[SOLVED] Windows Setup could not configure Windows on this computer’s hardware – Windows Vista to Windows 7 Upgrade

Problem Description
When performing an upgrade installation of Windows 7 or Windows Vista you may receive this error message during the hardware detection phase of setup if the following is true:
1. Your system has an Intel storage controller (ICH) configured to RAID or AHCI mode in teh BIOS.
2. Your hard drive is an Advanced Format 4K sector / 512byte emulated disk.
Something similar to the following line appears in C:\Windows.~bt\Sources\Panther\setuperr.log
“Error [0x060435] IBS Callback_Specialize: An error occurred while either deciding if we need to specialize or while specializing; dwRet = 0x4b8”
Something similar to the following line appears in C:\Windows.~bt\Sources\Panther\setupact.log
“Info SYSPRP SPPNP: iaStorV is the function driver for device PCI\VEN_8086&DEV_ … “
Solution
There are two possible solutions, one is to integrate the latest version of the Intel Rapid Storage Technology driver for your Intel storage controller into the Windows 7 installation source.
I will not cover this solution in detail, but one would use the Windows Automated Installation Kit.
More information about the WAIK for Windows 7
Installing drivers offline using DISM
Download the Windows 7 WAIK
Intel Rapid Storage Technology Driver
The second solution (which I believe to be simpler) is to temporarily switch the storage controller into IDE/Legacy mode in the BIOS before the upgrade.
To do this the correct services must be enabled to allow Windows to use the IDE mode drivers.
Run regedit and navigate to HKLM\System\CurrentControlSet\Services\intelide
Change the data for the ‘start’ value from 3 to 0.
Repeat this step for HKLM\System\CurrentControlSet\Services\pciide and HKLM\System\CurrentControlSet\Services\Atapi
Reboot your PC and enter the BIOS setup menu.
Look for a SATA, Storage, Advanced or Integrated Peripherals configuration section. This option may be on the main menu as well.
There should be an option such as SATA Configuration, SATA Mode, On-Chip SATA, etc. that lists IDE/Legacy, AHCI, and RAID
Save changes and exit, Windows should boot. If it fails to boot with a STOP 7B error you may not be using an Intel storage controller or did not properly enable the required services.
Attempt the upgrade again. Windows 7 should upgrade and transfer your data successfully.
After the upgrade has completed AHCI or RAID mode can be re-enabled by following the instructions here:
Error message occurs after you change the SATA mode of the boot drive
Run regedit and navigate to HKLM\System\CurrentControlSet\Services\msahci
Change the data for the ‘start’ value from 3 to 0.
Repeat this step for HKLM\System\CurrentControlSet\Services\iastor (if it exists) and HKLM\System\CurrentControlSet\Services\iastorVHKLM\System\CurrentControlSet\Services\iastorV
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