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Gee Whiz! I might get back into the computer repair biz again!
All joking aside, I believe the fee your “technician” charged was a bit much. Unless parts were replaced, the charge appears excessive.
I have Adaware and it downloads updates frequently without incident. If your “kernel” …broke…as the technician said, then I would say that something else caused it. Normally the Kernel32 process does not just “crash”. It fails to load or your receive “General page faults errors” which usually can be simply cured by starting in safe mode. You can then remove the program apparently causing the problem and start over. This then puts things back the way they were and the installation or update can take place normally.
Here is a good source of information if you really want to know about the Kernel:
http://aumha.org/win4/a/kernel32.htm
Don’t mean to rub salt in wound, but I would not use the technician again until he explains fully what he charges and for what services.
As for “rebuilding” your system. It is simply a matter of reinstalling the OS in most cases…partial or full.
Sometimes, using a “restore” point does the trick.
There are many talented people here on the forum to help you. It may turn out that you MAY need a technician, but at least you will know what you are up against and possible causes/cures.
Hummm… I wonder if I can charge by the “word” 
Good luck. 