Might be a good idea to start a new thread for each issue. I'd start by checking the processes in task manager. Any cpu activity? Without seeing the computer, it's hard to figure. We can't assume anything... Make sure you do a clean install. I'd delete net7 directory and start again. As long as you have the install files, this should not take allot of time.
make sure net3.5 framework is installed.
I hope this helps you.