It could take some time but you can download and burn a W7 SP1 DVD if you have a working machine and a blank DVD. It's a lot of work for something that "might work" so it's up to you but I don't know what else to try.
W7 SP1 (choose 32 or 64-bit but be sure to get the version you have a key for: Home Prem, Pro, Ult). And you need software to burn it to the DVD that understands what an ISO is; if you don't have something then
IMGBurn is excellent Freeware. See our
Freeware DB for other program ideas/potential replacements as well.
When I can't get a clone to boot I pop in the W7 DVD but I don't know about your "Windows could not complete installation" error, that could mean there is an issue with your restore DVDs. If all else fails you could use the W7 SP1 to try a fresh install if it doesn't fix your issue.
The only issue with using the official Microsoft W7 SP1 DVD to install is that it will not include any special drivers or programs your manufacturer would have. Most of the programs, like trial-ware, you delete anyway but there are usually a few programs, for special keyboard keys or on-screen volume/brightness, etc. that are useful and you would have to get from the manufacturers website, find alternatives, or do without.