Windows 7: Windows 7 does not boot past "setup is preparing..."

My laptop froze after entering a wrong product key. I then pressed the shut down button till my computer went off. I restarted the computer and chose the "start windows normally" option. The laptop boots to "setup is preparing for first use" screen. It lasts for about 1 minute and then the computer restarts automatically following the same processes.

Please do not double post... stick with your original thread...

If this is your specs below,may best to stay with Win XP.

thanks a lot theog but my other problem is that i seem not to be able to enter the setup of my computer. I have used all the function keys before start up but they all dont respond. Please throw more light on this for me. Thank you.