topcoug:
Hello and welcome to the forums. I have an even older, I suspect, Pavilion A250n (everything stock from factory), running the exact same setup dual booting XP Pro Sp3, and Windows 7 Pro 32 bit, with no problems what so ever. I would only ask, which version of Windows 7 are you attempting to install, Retail, OEM, one of the older RCs and what is the source media, purchased or burned ISO, etc. The reason I ask is that sometimes the media or the device that the media is using (DVD player) can cause some similar problems.