I have finally solved the problem!! Here is the solution:
I have three partitions, C: (Windows Vista), D: (Windows 7), E: (Files)
My computer could not find the BOOTMGR file. During installation windows 7 creates a partition which houses the installation files, this is where my computer would boot to when it could not find the bootmgr. For some reason when I had the DVD in the drive the computer would find the bootmgr and all would be fine.
In an attempt to solve the problem I changed the boot order of my SATA drives so the Windows 7 drive was first in the BIOS. This also didnt help, but I no longer ended up at the install partition I just got a "boot failure" message. Next I selected the windows 7 partition (D
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