Windows 7 DVD doesn't boot, neither does USB

Hello all,
My problem is that I'm not able to install windows 7. Been trying to install this since past 1 week. The methods I've tried are:

1. I have a windows 7 bootable DVD which doesnt boot up. (I've set BIOS to boot from DVD ROM first but it just won't boot from the DVD).
Tried to install Windows 7 from the same DVD to a friend's PC and it worked. So the DVD has no issues.

2. I tried to run 'Setup.exe' from within the DVD. The two options pop-up 'Check compatibility' and 'Install now'. On clicking install now, after sometime, an error is encountered with the message 'Windows was unable to create a required installation folder' error code:0x8007000D.
I am running Windows XP Professional and there's only one user on the PC which is the Admin, so I do not know why is the setup not getting permissions. I've also uninstalled my antivirus, CD burning software, disabled firewall and disconnected all other devices, but its still the same.

3. I tried to install it from a USB device by making it bootable but that too doesnt work. (Yes the mobo supports booting from the USB).
The problem is that XP does not recognize a 'USB' device on boot. Rather it shows this USB stick as a removable 'Hard Drive'. Furthermore, I changed the order of Hard Drive boot to boot from this removable Hard Drive first, it still boots my existing OS.

Is there anything else that can be done? Any help would be greatly appreciated. :)

Please ask if any other information is required, this post is becomimg increasingly long to add any other details.

PS: I want to dual boot windows 7 with my existing XP, but that would be after I manage to run the windows 7 setup in the first place.

PPS: Please bare with any 'not-so-technical' terms, I am a beginner with this. Again, thank you for taking the time and trying to help, really appreciate it. :)
 
There seems some confusion about XP here. At boot time, to install win 7 from a DVD there MUST be NO operating system running. The PC will be running a Dos-like OS directly from the DVD, and there is no question of XP being involved, nor permissions.
Your fundamental problem seems to be getting the DVD to boot, and until you do, you will get nowhere.
If you want to dual-boot with XP, it is very difficult to set up if Win7 is installed before XP, but easy to install Win7 when XP is already present, although you need empty space on the HDD to install on. You must not install Win7 on the same partition as XP.

So - can you release at least 20GB of spare HDD space by reducing the XP partition?
If not buy a second HDD just to carry Win7 (which is what I would do as it's an overall simpler process).

First of all backup fully so you can always recover if you make a mistake (you want a drive IMAGE, not just a backup).
The next step would be to run XP normally, download a partition manager (such as EASEUS partition manager) and reduce the XP partition by at least 20-30Gb.
Then try booting off the DVD. Until you can do this, it is all a waste of effort. It can be your bios is not recognising the DVD drive properly (maybe a bios update is available), or the drive is just faulty (they are not very reliable at the best of times).

Here https://www.techspot.com/community/topics/cant-install-64-bit-windows-7-from-dvd.181914/ is a similar set of problems to that facing yourself. With a successful outcome from post #17 onwards (bios update to run 64-bit)!! If that post does not help, search this site for 'cannot boot from DVD' and try some of the other successful results.
 
Back