Sorry for the confusion.
Yes, I was using XP to partition and format the drive then I powered down right at 100 percent of Format routine.
I was thinking maybe XP put some small portion of itself on the drive possibly that Windows 7 might have recognized and allowed it to do a clean install from boot up even though it was an Upgrade Version. SIW2 stated they did not think this would occur (xp putting some small portion of the load on the drive).
So that leaves me with the fact I put the Windows 7 disk in, booted up and did a clean install, did not enter the CD Key, did not check Activate box, and did not check the update Windows when load is completed. Windows 7 installed perfectly then I clicked on the Activate routine, entered the CD Key and activated successfully online.
Yes, Microsoft will probably put a patch in there updates like they did on Vista but if you uncheck the Update box and Activate box while it is installing Windows 7 the patch will not be there to interfere (at least on the version that is out now).
I know this can lead some to by the Upgrade version at a cheaper price but that is not what I did as I have XP SP2 and Vista Ultimate Upgrade.