Ok lets get this straight, you bought and upgrade version of windows 7, and you are trying to do a clean install if I am correct.
Not trying to be mean, it will never work, you can not do a clean install with an upgrade key. It just won't work, they aren't designed that way, and for people who understand computers it is the worst option.
What you needed to do was purchase was a clean install version.
http://www.newegg.com/Product/Product.aspx?Item=N82E16832116762