I think I've got the same error... When all the files for installation are copied, the system reboot, an show the Windows logo, after sometimes I've got a message about a quota and virtual memory(I'm french, and the message is:"le quota des fichiers d'échange de mémoire virtuelle est trop limité pour l'opération", ""The quota of virtual memory swapfiles is too limited for the operation"" may be a poor translation...) I will try to remove IE7 from the hotfix...