I've been overcome with assistance on this issue
... especially when other posts with the same subject have like 13+ replies (Stuck at "setup is starting services"
Anyways, I figure I'll help those in the future having similar issues. The problem was something on the inner 5-10gb of the hard drive. I made a 10gb partition (which is now wasted space), THEN made the windows partition out of the remaining space and it effectively blocked off the bad sector and works fine now. I suppose its just a cover to the issue that the hdd is dying, but what the hell, it works now! Issue resolved.