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#11
That's a keyboard driver. Change the keyboard.
You said you troubleshot installation failure but weren't specific as to where you got the help or what you did.
Did you use the prescribed step for Completing Installation hang which is often a driver, by entering Device Manager to uninstall the erroring Device? Device Manager - Access During Windows 7 Installation
If this fails then get the superior Clean Install: Clean Install Windows 7
I use surrogate computers sometimes when I have no more time to troubleshoot install failures, however this is always on a Clean Install. I would not waste my time on an inferior in-place Upgrade except as a temporary substitute.