I'm sorry but this is still indicative of bad install media. Please download a fresh copy of the
latest official installer w/SP1, burn to DVD or write to stick using
Windows 7 USB-DVD Download Tool.
Try setting HD first to boot in BIOS setup, then trigger DVD or flash stick to boot using HP ESC or F9 one-time BIOS Boot Menu key given on first screen.
If this fails again, move on to reset BIOS to defaults. While in BIOS set SATA controller to AHCI. Save and exit.
Next wipe the HD by slaving it in another computer to run
Diskpart Clean Command or boot free
Partition Wizard bootable CD which will autostart to Wipe from Disk tab.
If this fails test the HD using maker's
HD Diagnostic extended CD scan.
If install still fails test your
RAM - Test with Memtest86+.
Remove all but 2gb RAM to try install. Next swap RAM sticks.
As a last resort move HD to another machine to install, before moving back
SysPrep to move HD to another computer.
When installing Upgrade version to a wiped HD, leave Product Key blank during install then afterwards do the quick registry workaround here to activate:
Clean Install with a Upgrade Windows 7 Version