The Disk Read error is a HD problem. Does it register in BIOS? Run the HD maker's HD Diagnostic
extended CD scan followed by full Disk Check
from installer/Repair CD's Command line accessed by pressing Shift + F10 at first screen after disk boots.
If disk won't boot, reset BIOS to defaults. Set HD first to boot, then trigger disk drive to boot using one-time BIOS Boot Menu key. Does it prompt to "Press any key to boot disk?"
If not burn an installer DVD to try again from Troubleshooting Windows 7 Failure to Boot
, work through the steps from the top.