Actually for some reason you took the wrong direction from the beginning to end up in a dead end with no help from level 1 donkeys of MS support...
Would have been easier, after a proper backup, to boot from the CD, Not from Windows, format the drive and start the installation. No need to be connected to internet and find an updated installer it's on the disk.(Everything is on the disk...) Provided that you were not trying to install a 64bit version on a 32bit MB, I can guarantee you that (If the hardware was ok), W7 would have installed 1st time without any problem. Maybe you were trying to minimize the impact of a full reinstallation, I don't know, but I always prefer to not re-use or start from a corrupted system when I reinstall.
Anyway it's all done now and too late to try again, so take my info just for what it is, a simple comment.(From a MS engineer though. :) )
Would have been easier, after a proper backup, to boot from the CD, Not from Windows, format the drive and start the installation. No need to be connected to internet and find an updated installer it's on the disk.(Everything is on the disk...) Provided that you were not trying to install a 64bit version on a 32bit MB, I can guarantee you that (If the hardware was ok), W7 would have installed 1st time without any problem. Maybe you were trying to minimize the impact of a full reinstallation, I don't know, but I always prefer to not re-use or start from a corrupted system when I reinstall.
Anyway it's all done now and too late to try again, so take my info just for what it is, a simple comment.(From a MS engineer though. :) )