I don't know about the OEM DVD, however I used to do a lot of support on the Dell forums and we saw an occasional new PC with a bad disc image (load) and various problems. Reinstalling from the Dell recovery partition on the hard drive fixes this problem. These were "consumer" model PC's, not the commercial line such as an Optiplex.
However, in you case I would more suspect hardware than the software. I've never seen a corrupted Windows disc, or at least one that would cause BSOD.
BSOD's, depending on what happened can cause corrupt disc sectors, so I don't think its an actual hard drive problem.
Along with installing the OS, you also have to install all the Dell drivers. Windows 7 will install many drivers but not all drivers. On a "consumer" desktop the correct install is (1) Install OS (2) Install Dell Desktop System Software (3) Install motherboard chipset drivers (4) Install device drivers including video, Dell sound drivers
, Ethernet, etc.
The Dell Desktop hardware forum section may be something to consider, with knowledgeable users helping users.
Desktop - Dell Community