Will not boot past "welcome" screen

I could sure use some help, been trying to upgrade my wife's computer from XP pro to win. 7 home prem. 64 bit. I am on my 3rd install, the 1st two times it was user error (my fault) that created the problem, this 3rd time I was much more careful but something is just not right.

Problem - after I sign in with "password" I get to the "welcome" screen and the small circle just spins forever.

I have done a lot of research and found a lot of possible fixes but nothing works.

This is a custom built system (by me) and worked perfectly with XP Pro, I recently did the same conversion on my computer system and had NO problems, I am using "OEM" install disks purchased from the Egg.

HDD - (120GB Seagate)
Power Supply - 500w antec
RAM - (Corsair 2GB DDR2 XMS PC2 6400)
CPU - Intel core2duo 6300 OC'D to 2.10mhz

Tested HDD with Crystaldiskinfo w/ HDD Smart Monitoring - no problem
Tested RAM with Windows built in RAM test (2 passes) -no problem

I have run:
Avast - boot scan, smart scan, full scan - all OK
SFC - OK
Disk Ck. -OK
Malwarebytes - OK
Reinstalled GeForce driver
Root Kit scan w/Spybot - OK
Defraged HDD
Crap Cleaner

The system WILL boot fine in "safe mode"

Most drivers are from "manufacturer" not just M$ generic

I have tried tracking down "error" info from "event viewer" not much help, did try a couple of "fixes" to no avail.

I am not opposed to "reinstalling" again but if there is a hardware problem I would be wasting my time.

Attached are screen shots from a fresh reboot, before I did anything on the computer -

I would appreciate any input from you guys as to what to try or where to turn -

Thank you

Joe

There are 80GB + free on the 120GB Hd

All updates have been applied

Only use SB to control "start up" and occasional malware scans and "root kit" scans

Key Scrambler hides your key strokes, been using it for a couple of years, never been a problem, have it installed on my computer

No driver issues I can see

I have read the Tutorial you linked, I just went over it again and may have not done a "custom install" correctly, that is regarding the "boot partition"

The problem only occurs at boot, if I get by the "welcome" screen the computer runs great !

If you or anybody else does not think there is a hardware problem, I will reinstall

Thanks

Joe

I put the "install disk" in and booted into it and went as far as "custom install" to see what was there - see below

Disk 0 unallocated space (size = 100mb) (free = 100mb)
Disk 0 Partition 1 (size = 111.7GB) (free = 82.2GB)

Shouldn't the "unallocated space" have the MBR in it, instead of being empty ?

How do I correct this, run a "system repair" from the install disk or reinstall the OS.


Joe

@ Sugarcake18, I did another checkdisk with both boxes checked this time, same result, all OK

I also set up "services" according to Black Viper for win. 7, same as I have on my computer

Nothing has changed, sometimes the computer boots fine and runs great, other times it hangs at the "welcome" screen after entering password, I then force a shut down and boot into "safe mode" (which boots up fine) then try to do a "normal" start up.

I am using the troublesome computer right now as it booted after a "safe mode" start

I am thinking another reinstall is in the future, but 1st I would like to try the "repair" program included on the Win. Install disk, any thoughts on doing that ??

Here is a screen capture of Computer Management from this computer

Any more thoughts about this mess ?

Joe

Another question, if and when I do a clean install of win. 7, and I get to the "custom" option of what drive to install to, exactly what is the correct way, here is what I will be seeing -

Disk 0 unallocated space (size = 100mb) (free = 100mb)
Disk 0 Partition 1 (size = 111.7GB) (free = 82.2GB)

Do I move the "partition 1" to the top and format and leave the "unallocated space" alone ?
Do I delete the "unallocated space" and "format" the "partition 1" ?
Or should I "delete" instead of formatting ?

Thanks again


Joe

After reading again the link "Layback Bear" posted in thread # 2,(Clean Reinstall - Factory OEM Windows 7 ) I see and think I understand better what to do from item #6 - that is: Click "next" after deleting all partitions to let the installer create and format your installation partition for you, ignore the small boot partition which will be created.

In other words - everything needs to read "unallocated" and the installer will take care of the rest

That sound right ???


Thanks


Joe