After booting, the Repair console is on the second Screen of Windows 7 DVD.
Accept any offered Repair. If Windows 7 doesn't start, boot back in to Run Startup Repair
repeatedly, post back results.
It should automate System Restore, but if not click through from the screen where it discovers installation to Recovery Tools list to run it manually from list. Then open a Command Line to run SFC manually as well from the link I provided.
Can you write MSSS to flash stick instead, boot under USB, Removable or HD's using one-time BIOS boot menu key, which I'd also try for the CD. You may need to burn another using a Windows machine.