Try extracting the ISO to Vista desktop to run Setup from there.
You can locate the driver in Vista's Device Manager SATA controller Driver info tab.
The fact that it would duplicate the error for USB flash install sounds like a malfunction.
Try removing 2 gb of RAM.
Check BIOS version to see if you have the latest.
Checksum the HASH of the ISO you downloaded
to confirm it here: http://www.mydigitallife.info/2009/0...vd-iso-images/