New
#21
What Option Two are your referring to? I haven't linked you to any tutorial with an Option Two?
You should be following the same steps as for Clean Reinstall - Factory OEM Windows 7
except using the Product Key on the Win7 disk's COA sticker instead of the one for Vista affixed to machine.
If the disk you were provided doesn't have SP1 then use the disk in Step one of the tutorial above, the one I just linked, not some other tutorial.
Your Upgrade disk will work if it has SP1 and is for the exact same version of WIn7 as on the Product Key's COA sticker. If you have 4gb or more RAM I would be sure its a 64 bit installer.