Correct me if i'm wrong,would it have still happened if
A:Used limited user account instead of Admin
Depends on the malware.
B: Change the actual name "admin" account to another name
I doubt any malware is stupid enough to hard code account names into them.
C: Used some decent realtime scanners that block any attermpt for install of anything including unidentified software when in admin mode i.e spywareterminater ..a shamless plug right there for one of my fav apps when HIPS is activated nothing installs without me knowing about it or without my permission
As you could have read he did. Using a different one, as the one you mentioned, is trivial as no scanner is 100% malware proof, not even your favorite.
D: Ran daily or weekly backup images of My Docs or Docs & Settings or whatever folder ,you could've also have used any number of free hdd scanners like recuva,undelete plus etc to retrieve any misplaced data you needed back & most probably still can,or partitionfindandmount (free but limited to 512kb recovery speed unless bought), to scan sectors for a bit more intensive data recovery or getdataback which is only free to try but man it works great
As you can read he also made backups. He only lost a few day's worth. And in my experience its faster to just replay those games up till where you were than to use a recovery program to recover the save games

E:Using linux
Probably, but he would also not have been able to play the games in the first place

(depending on the game in question)
Stopped surf'n pron site...nough said..lmao
Stop making insane demands! *cry* Don't blame the pron