If you are still seeing all other disks read or booted from without any problem the two system disks would then be the likely problem. The error code itself often points to a corrupted system file such as an imcomplete burn to disk if not found locally on the main OS drive.
The problem with that however is that isn't specific to any one version of Windows or to any attempt to install or repair a present Windows installation. It also can appear with the Microsoft Security Essentials av program as well. The lack of any restore points that go back a few weeks isn't good either in case of any registry error being at fault.
One option for seeing just a good old clean install of Windows without losing the factory recovery partition would be nuking the C primary off the drive to see a brand new C primary replace it and borrow a 7 dvd from someone using the product key on the sticker usually found on the bottom on laptops. Check to make sure Alienware attached one there first however since they are not quite an HP or Dell.
Once the clean install on a fresh primary goes on you simply add the key on the sticker in to see the fresh install activated. The other option besides trying this by optical might even prove to be a working solution namely by a USB Install Key made with a flash drive you boot from instead. You would need a 7 dvd however to see one made up.
USB Windows 7 Installation Key Drive - Create