Newbie needs help with repair install - windows 7

I am trying to do a repair install on windows 7 using the Windows 7 disk. It was at the point of the compatability issues and gave me the following warnings:

Your current version of windows is more recent than the version you are trying to upgrade to. Windows cannot complete the upgrade.

Windows needs to be restarted so necessary changes to system files can be made before continuing.

Can anyone help? I downloaded the tutorial on Repair Install and am following it to the letter until these errors came up.

Do you have Service Pack 1 installed?

As Maguscreed says, a clean install may be preferable.

But, on the repair install, can you get this far, from the repair install tutorial?

Right click on the DVD drive
Click on open
Right click on the setup.exe file, and click on Properties
Click on the Compatibility tab
Check the box “Run this program in compatibility mode for”
Select Windows Vista (Service Pack 2) from the drop down menu, and click on OK.

Restore point error

theog said:

Do you uninstall SP1?
You like take look at step 5:
Repair Install

I seemed to do the repair install and I will have to make a restore point to see if it works. I still have the Softspyse program on here though and cannot uninstall it. They said to uninstall as much as you can manually and I did, but each time I reboot it is there. I hear it is a horrible program which can louse up your program which I think it did.
I did run the program with step #5 in the compatability mode. Thanks so much.