Windows 7 upgrade/Virtual Memory Service can't start

I am trying to upgrade my son's laptop from Vista to Windows 7. My son's computer is a Toshiba Qosmio and I ran the Toshiba Upgrade Tool with no problems. The problem I have now is that the virtual memory service is not starting so when I start the install of windows 7, I get the error "windows could not retrieve information about disks on this computer". I tried to manually start the service and get the error "service failed to start". If I put it on automatic, it just stays on "starting". Obviously...this is not allowing windows 7 to see my disks. Disk management does not show my disks due to virtual memory service not being able to start. The computer is ready for the upgrade....just can't get passed this problem. I don't want to use the recovery disks if I can help it.

Try booting the DVD rather than installing from a booted Vista. You should still be offered the choice of Upgrade or Clean install.

I tried that, but it won't let me continue due to trying to start from Windows. It tells me that since I already started in Windows that I should continue the install there.....very frustrating!

Try booting Vista to Safe mode, then try the install from there.

Any other suggestions? I am desperate!