That was my best shot to be honest. I'm almost curious if you have a hardware issue now.
The error you are getting is generally attached to damaged or improper system files.
This shouldn't happen at the first step of installation.
Greg's post up above covers a few more things to try that I missed in the realm of just making sure you have done everything possible to pave the road for a proper reinstall.
Edit if you have a retail win 7 key to use, you may also want to try downloading and making a new installation disc. http://techpp.com/2009/11/11/downloa...ownload-links/
That link will point you to where you can download all the various win 7 iso's from amazon directly.
This of course only works assuming you have a proper key for that version.
My guess would be she has a home premium key, that's what a majority of systems come with.