Win 7 pro 32 fresh install Error: 0xC0000221 ntkrnlap.exe missing or c

I have an older XP Compaq desktop which I am trying to bring up as a Win7 pro 32 bit box.
Old hard drive re-formatted from command line.
Disconnected the 2nd HDD.
4GB memory. EVGA 8400 GS graphics card. . .
After doing the install at the first re-boot when the computer comes back up I get the
Windows failed to start. . . blah blah,
File: C:\Windows\System32\ntkrnlpa.exe
Status: 0xC0000221.
Info: Windows failed to load because kernel is missing or corrupt.

I have run the ram test from the install DVD.
I have run chkdsk from the install DVD
I have run the system/memory test from the Compaq BootRom.

Any Suggestions would be appreciated.

Did you run the Windows 7 Upgrade Advisor?

Did you update the BIOS?

Work through the steps to Troubleshoot Windows 7 Installation Failures - Windows 7 Help Forums