The error 0x80070017 translates to "CRC Error" which means that the files that are being copied from the disk are not being copied to the hard drive correctly. The files on the DVD are being changed or corrupted while being copied to the hard drive during the install. This usually means either a bad installation DVD, or there is a read error on the DVD drive.
You could use a different DVD drive, but even better would be copying the installation files to a USB stick (4gb or bigger) and performing a USB Flash Drive installation. It's a faster install than DVD too.
USB Windows 7 Installation Key Drive - Create
Best to download an installation ISO, or use a known good DVD in a known good DVD Drive on another computer to do this.