Help Please. Windows 7 64x Install Error 0x80070017

Starting from the top. I have a Lenovo G580 laptop. It had a hard drive failure. I got the Drive replaced and the vendor added a windows 7 ultimate x32 which was cracked. Since the laptop came with a genuine windows 7 home premium 64x installed when i brought it, I downloaded a similar version and attempted to make a fresh install.

Now this is where the real fun begins. During the install, the asinine genius that I am, I managed to delete entirely the small 100mb partition and the Primary partition which held the OS (C:\). Making the entire space unallocated. And no OS gives the BOOTMGR missing error.
Then I tried installing the downloaded copy of Windows 7 Home Premium 64x. Everything was fine until the "expanding files" part of the installation process the error pops up at 21% mark.

Solutions I tried:

Foremost I tried cleaning the DVD with a soft cloth and rerunning the entire process. Same result. Then I tried using the Windows 7 x32 Home Basic (Worked on the same system once earlier and was in working condition) Same result.
Most places, including here (Install Windows Error code: 0x80070017) recommended making a bootable USB Flash Drive. I tried doing that but there were some errors during the process. Attempts to solve these led me to Microsoft's website which said that for a bootable flash drive to work it must be made on the same PC you intend to use it on. Is this true? I would love to try this for myself but all my attempts to create a bootable flash drive have failed (Creating a x64 version on x32laptop -> bootsec error, x32 on x32 using both the Microsoft's official tool and the DOS method).

Restrictions:
I cannot delete (unallocated) all partitions because the others have important data.

TLDR: In an attempt to make fresh install I managed to delete the 100mb system partition. Now Get the error code 0x80070017 during install procedure expanding files at 21%. Bootable USB not possible. Help Help Help.