Windows 7 stuck at "setup is preparing your computer for first use"

Believe it or not; i would say its the fact that you only have 4gb of Ram. Usually for most windows 7 installs you want at least 8gb of ram for optimal performace. Also, if you can, do a mem test using the memtest program for which i will post the link here:

Its not called memtest in windows 7 but here is how to do a memory diagnostic test:

http://windows.microsoft.com/en-us/w...-your-computer

4gb is ample for Windows 7.....certainly not a minimum requirement.

A better memory test is Memtest86+

RAM - Test with Memtest86+

Doh!

Yea that's the best bet at this point to run memtest

Is the installation off an original DVD media?

Exactly what I was going to ask, what are you using ( be very specific ) to do the install ? Have you used it successfully in the past ?

Unplug all other HD's and peripherals,

Boot into BIOS setup, reset to defaults, save changes. Since it's an EFI BIOS you'll need to decide if you want UEFI BIOS vs. Legacy BIOS. If UEFI follow these special steps for Install, otherwise enable Legacy BIOS or Compatibility Support Module to proceed with normal install:

Set DVD drive first to boot, HD second, set SATA controller to AHCI, Save changes and Exit.

Then boot into Windows 7 installer DVD or flash stick burned or written using tool and latest ISO for your licensed OS version here. I would use a fresh ISO written with tool in Step 2 if it fails again. I use 32 bit Win7 for less than 4gb RAM with better results.

At first installer screen Press Shift + F10, or enter System Recovery Options to open a Command Box, type:

DISKPART
LIST DISK
SELECT DISK 0 (after confirming Windows 7 target HD #)
CLEAN
CREATE PARTITION PRIMARY
FORMAT FS=NTFS LABEL="WINDOWS 7"
ACTIVE
EXIT
EXIT

Next click Install Now, then Custom install to Clean Install Windows 7 to the partition you created. If it fails then report back at which step and the verbatim error message.

In addition read over these steps to understand the tools and methods which work best to get and maintain a perfect Clean Reinstall - Factory OEM Windows 7. The steps are the same for retail.

After install you can adjust partition size or Create new partitions for data, etc. in Disk Mgmt. You are creating the partition here for the purpose of wiping the HD and marking Active which overcomes certain install failures.