Since you are using an upgrade disk you will have to use this tutorial a Clean Install with a Upgrade Windows 7 Version
as widows 7 will not activate trying to directly upgrade from vista. Also some of the errors from the Vista installation may be carried over to the Windows 7 installation if a direct upgrade was possible, however If you thoroughly read & follow the tutorial in option two there is a way to retrieve some of your data from the windows.old folder but not installed programs.
I would also recommend that you get a second, third opinion from many of the skilled members here before proceeding as some have lifelong experience dealing with computers.
Another option if you do not want to lose all your data and programs would be to check the Vista forums (see link just below search) as many of the same members here are also members of that forum too and may be able to fix the wonky vista installation