All those Bad install type Do create Errors...
The Ipod Way Is also a GoodWay....Posibly LOL, Can the Ipod Stand up to the FIle transfer process?... working simular to a USB INSTALL... How does it effect BATERY POWER CONSUMTION?
Windows install like to mount the boot.wim (Replacing/Old BCD)And Apply the Install.wim -1Win7 image To the Harddrive Chosen.... after this the install is all off the harddrive...
PS: an operating system install Is supposed to be done from the LOWEST LEVEL Available.... Installing windows from within windows is always bound for problems.... this is 2009 NOT 1998.
USB DEVICE (even ipod): USB Windows 7 Installation Key Drive - Create VHD file: Virtual Hard Drive VHD File - Create and Start with at Boot
Windows PE Environment from USB KEY >>> Run from Network SHARE:
OR:
Use ImageX to apply a syspreped image -