Win 7 windows error recovery

I just put a new HD in a 3 month old HP G62, put in recovery disc 1 and then 2 and all seemed to go fine. Then it asked if there was another disc, which HP sent an 'application and driver recovery cd', so I put it in and ran it.
After removing the 3rd cd it said to click continue and then it begin to install the software?
I believe drivers were first and then it moved onto 'installing softwares' after which a prompt popped up which said, 'u must restart to apply these', but the damn cursor is no where to be seen and enter and no other key does a restart. So I shut it off and turn it back on.
Now everytime I boot I get a 'windows error recovery' black screen with several choices, i.e. safe mode, safe mode with networking, safe mode with cmd prompt and start normally.
Now then, I can 'enter' thru the 'windows error recovery' screen, but when windows opens and I begin to make changes, download a virus program or anything else, with a minute of two the cursor locks up and I'm done.
I ran the recovery discs 3 times with the same results.
I ran all the diagnostic and the HD and memory are fine. I have changed the boot order to hard drive.
One out of 10 times booting I can get the thing working and it seems to work ok, but then when you shut it down and reboot all starts over... :banghead

 

Still have the same problem, but here is exact updated information.

Changed boot order to Cd drive, inserted disc 1 and rebooted.
Disc 1 and 2 ran no problems and then I got this series of messages:
Finished Installation
Setup is:
starting services
installing devices
applying system settings
setup will continue after restart and restarted itself
then displayed windows start up window
setup is preparing your computer for first use
then displayed windows 7 welcome screen
set up window
prepare driver installation
then installing drivers which took about 10 minutes
restarted on its own
preparing your computer for use
restarted on its own
displayed black screen with small box in top left corner with a check in front of 'preparing software' and another prompt in middle of screen which says "you must restart your computer to apply these changes and offers options of restart now or later - UNFORTUNATELY there is no point (mouse) and pressing enter does nothing.
It has been locked in this screen now for over 20 minutes.
Suggestions?????
:banghead
then installing software

 

David... it then reboots to the 'Windows Error Recovery' screen. :confused

Hey David... I have been searching the net and on:
http://social.technet.microsoft.com.../thread/7d765b66-17c6-46e8-94e2-dd39b5b504c1/
This was from early 2009 I believe and the dude said:
• Just a heads-up to everyone, I've seen this so many times on the net I can't believe it hasn't been remedied in the latest Windows 7 installation disks and ISOs by now . . . but I can tell everyone a few helpful things.

He then goes on with more than a page of info including, but not limited to:
jumpers
updating mother board
wiping drive with furnished cleaner
And he also mentioned it works, but sometimes takes 6 times or more.
WTF matie.... this is a bunch of crap... huh

Also... could heat have something to do with it? I wonder if they have taken surplus crap, over clocked this thing to rock a little better and then sold it, and that is why it runs soooooooo hottttttt?
I'm just guessing here...
Thanks

 

Update 25 March 2011 14:55
Maybe a kind administrator needs to copy/move this to malware????
Although I have no idea how, this laptop is exhibiting all signs and appearances of a malware or virus, e.g.:
I cannot download Avast, a very official prompt says it isn't compatible
I downloaded Malwarebytes, but although it will start, it won't run.
So I FINALLY was able to download MSE after 8 attempts, but now the puter won't let me update it and run it.
I cannot update windows
I cannot run trouble shooter
I cannot open msconfig
I cannot open task manager

:crap I JUST put the brand new HD from HP in yesterday and the puter was only online to MG in an attempt to download Avast and Malwarebytes.
And I know I didn't get a bug from MG.
Sorry to be so damn confusing everyone, but believe me, I am confused.
I thought putting a new HD and doing a recovery boot was the ticket.
Now I'm wondering?:confused
Could our router be contamined with a virus and since I couldn't install anti-virus until I put it online it was instantly contaminated?
Is there someway to scan the router?

FYI... I just looked for malwarebytes and it is GONE... I tried to download it again, and at 3.35mb of 7.37 the set up froze.

WTF...