Installation Error Can't find solution.

Hey all,

I have been trying to reinstall Windows 7, but I have some problems...
(this is a repost of an old thread, same problem with an added trouble)
I backed up everything i needed, and decided it was time to start with a clean OS. I tried reinstalling Win 7 Ultimate x64 (With the same disc i used to install it last time) and it gets past the first part (Copying temp files) or whatever, it then tries to reboot, with success and the the mouse appears with a black screen and then an Error box pops up with (Application error - winpeshl.exe | The application was unable to start correctly, click ok to close the application|) the Error code was 0xc0000142. I restarted the computer to see what would happen, now i have an option to boot the Windows Setup or Windows 7. If i boot the setup some Username and Password screen comes up and ive got no clue what it is.

I followed the turtorial over here:
SSD / HDD : Optimize for Windows Reinstallation

Now for my extra problem, I do not get the option for windows installation when I reboot, I can pick between windows install and booting the old version of windows (which I thought I reformatted already, but apparently its still there -_-).
I cant seem to reinstall windows, I cant format and I am completely stuck :s.

Any suggestions?

EDIT:
ORIGINAL THREAD HERE!!
Installation Error Can't find solution.

The pc has no problems seeing or using the DVD drive, he can use and see dvd's and cd's just fine. Its just when I try to use anything to reinstall windows, it wont cooperate.

EDIT:

Just used Darik's Boot And Nuke to remove everything, but it didnt work. Didnt even scratch Windows ~~