I have a Disk labeled: "Microsoft Windows 7 professional 32 bitx86 upgrade. Pre-existing OS liscense required." "End Item Part No. FQC-00116." If I run SSD / HDD : Optimize for Windows Reinstallation as you suggested, as I read about this, it will perform a low level format of my HDD and the OS will no longer be present. My Win 7 disk must have an OS in order to run. It is not a Bootable Disk.
I have run "Memtest86+" - 3 passes on entire 4 GB ram = no problems
Several of the other suggested programs may be on a Win 7 bootable cd but they appear not to be available on my XP machine. I did run "chkdsk" under Win xp and it also indicated = no problems.
I have not been able to find a test program for the "Compaq DVD-Rom SD-M1612 DVD/CD-R" drive but I did run the Microsoft "Mr Fix It" for dvd-cd drives and it said it had fixed everything but when I place the Win 7 Upgrade disk in the drive, it runs for a long time then reports "The File 'autorun.dll' could not load or is corrupt. Setup cannot continue. Error code is: [0x3E7]"
I tried the disk again on my other machine and it runs properly so I do not really believe that the above mentioned file is bad.
So, I am back asking, "what should I try now?"