I saw an old thread on this issue which I recently came across using restore discs ordered from HP. HP tried to convince me that I had a bad hard drive when I got this error. This is absolutely NOT a Vista problem. The problem is a bad image on the restore discs. Mine already contained a patch. Vista installed flawlessly from a Microsoft disc using the key code on the side of the tower. That same hard drive is now running Windows 7. This is a known issue with HP. They tried to sell my 90-year old friend a new computer when he had this problem. I wonder how many people they've gulled so far with this one.
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