Make sure in the BIOS that you have legacy boot turned on, and that legacy boot to CD is active and first, assuming that your mobo has a UEFI BIOS that can switch from the UEFI boot to legacy/compatibility. What is the mobo, so we can check that?
1. Do you have a BOOTABLE Windows 7 DVD in the optical drive?
2. Do you see it come up to say "Press Any Key To Boot From CD/DVD"?
If not 1, then you need to fix that by getting one.
If not 2, then you...well...put in the disc.
No, it just means that your motherboard does not have a built-in wireless network adapter. Your USB adapter will work just fine, assuming you install the drivers.
I'm sorry, but it's really utterly completely impossible for your keyboard to not light up until you get to the "fake login screen". Get to the BIOS and ensure, as Supermuncher said, that your boot order is set to optical first.
But...but....but....WE HAZ 2 B SAFE FRUM T3H MUZLIMZ! How can we be safe from them unless we let our respective governments spy on us all the time? How can we be safe unless we are constantly monitored???? We must be watched all the time OR T3H MUZLIMZ WILL WIN!!!
You would have to wipe-and-reload to get to 64-bit 10, but it's also possible that 64-bit 10 has the same 3 64-bit-instruction requirements as 64-bit 8.1. And your board or processor may not support those.