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It's always easiest and sometimes necessary to install using Win7 with SP1. It discusses how to find safe reinstall media in Step 1 of Clean Reinstall Windows 7 which also compiles everything that's worked best in tens of thousands of installs we've directly helped with here. You'll get and keep a perfect install if you stick with those steps.
For your retail disk be sure to use Internet Explorer as the Microsoft Software Recovery is reported only to work with it (if at all).
If you use pre-SP1 disk then be patient installing Windows Updates, watch for them getting backed up on Start menu Shutdown button as signified by a ! mark on the button, to clear them before trying to install more. It may take several days for them all to download since most of SP1 will come in the Updates and then finally a small SP1 download that is more of a wrapper.
Let us know how it goes.