I am just booting from the DVD and trying to install.
at first i thought it did not like my USB flash drive i used so then i went to my desktop and burned a DVD and get the same message.
it will browse the files on the DVD so it has a driver for the DVD and the laptop only has one DVD drive.
I have searched and some folks with windows 7 getting this message had a bad iso / burn.
but my burn passed the verify .... may have to try a new download later.