Ken reported that bugcheck for your bluescreen likely references a missing video
driver which is why I suggested you first try installing it by accessing Device Manager during install. It is indeed strange that
driver would be provided during IDE mode install.
However if you can access the Device Manager using the tutorial provided it may show other
drivers in error which you can then import to try to clear up the hang, or uninstall to get Windows 7 past the hang and to the desktop where Windows Update can update the
driver.
The installer is over a year old now until SP1 is slipstreamed, so some
drivers may still be missing and unavailable until provided by user or optional Windows Update.
If the driver isn't the issue then I would move directly to updating BIOS or (if current) resetting the CMOS, unplugging all other HD's and peripherals to try install, wiping the HD again of all code using Diskpart
Clean All.
Given the problems you had after IDE mode install with Updates hanging restart, I would also test my RAM with memtest86 and HD using maker's diag/repair full CD scan:
RAM - Test with Memtest86+ http://www.carrona.org/hddiag.html
If only IDE mode install works, do your optional driver updates first and enable auto hardware driver updating:
http://windows.microsoft.com/en-US/w...-your-hardware
Then install other updates in smaller groups so you can via System Restore determine which Update is causing hang, post it up in our Updates forum and open a support case on Windows Update website.