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#11
I don't think you can rely on WD at this point if disk will pass Disk Check and PW Check File System on one large lettered partition. You can also run HD Surface Test using PW CD.
I think you need to confirm the ISO integrity or download another, then burn to DVD using ImgBurn at 4x speed which never fails. If the problem continues write to flash stick using Universal USB Installer with Win7 in dropdown menu which also never fails. Cross-checking one with the other will confirm installer. Enable USB legacy in BIOS.
Test your RAM - Test with Memtest86+ . Remove all but 2gb RAM to try install.
Confirm you reset BIOS to defaults. Set HD first to boot, then use one-time BIOS Boot Menu to trigger DVD or flash stick.
As a last resort, move HD to another computer plugged in alone, try install. If it works, SysPrep before returning to problem machine: SysPrep to move HD to another computer