Automating software deployment - win7

Hello All,

I am QA and currently working on one windows software testing. It is Application software with SQL server database 2008 in backend.
System OS : Windows 7 both 32/64 bit

Problem is; I am receiving new updates frequently (almost every alternate day) and every time I need to clean up the environment and reinstall the base version of software with database and then run updated patches.

Update patches runs in batch file & it will update both Application files & Database.

I am looking for some solution to automate this process; I have 2 options currently in my mind.
1. Either I can create image of Base version software with DB restoration process.
So every time I get new update, I can easily load the image and run the updates on it.

2. Or I can automate whole software deployment process like
- Clean up all system first (including uninstalling software, clearing up all registry, deleting DB)
- Restore Fresh DB from backup file
- Run the Setup for base version
- Run the update batch file which will update my software + DB.

I have tried to get solution from AutoIT and seem like I will get some success with this tool, but still I am not much confident on it.

Can anyone help me if worked on similar task with AutoIT or anyother software.

Please suggest me if any other software or scripting can do this for me.

Thanks in Advance,
Ashvin