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Daemon isn't even supported by Win7 and is not one of the steps to Troubleshoot Windows 7 Installation Failures - Windows 7 Help Forums.
Did you download the new ISO for your licensed version at Win7 Home Premium x86 SP1 English Official ISO download and burn to disk with Windows 7 USB-DVD Download Tool.
Then if disk doesn't work try flash stick install, a step I gave you in my last post but not acknowledged and perhaps ignored.
Did you reset the BIOS to defaults? Check now for a newer BIOS version to update it while XP is still on the drive.