Start with the latest official installer wSP1 ISO burned to disk or written to flash stick from Steps 1/2 in
Clean Reinstall - Factory OEM Windows 7 which steps will get you a perfect reinstall so study closely.
In addition wipe the HD first with
Diskpart Clean Command accessing Command Line by pressing Shift + F10 at first screen when booting installer.
If install hangs again, enter Device Manager during the final phase to Disable any erroring devices (!), likely the Display Adapter:
Device Manager - Access During Windows 7 Installation . Then if install will complete update
driver from desktop.