Does it look like this?

STOP 0x0000007B
Inaccessible_Boot_Device

Yhea I think your assumption can be correct that the setup can't continue caused by missing Sata drivers for the harddisk.

Secondly, the path's in boot.ini can't be found during startup.

Slipstream Sata drivers with nLite should work or having the drivers on another media easy to reach during setup when asked.

A blue screen during setup can also be caused of insufficient cooling followed by overheating as a Windows setup normally need more activity of the hardware than under more daily easy use circumstances. If get blue screen during setup: 1. check inside the computer if it needs to be cleaned up inside from dust.
2. Be sure that fan's & cooling works accordingly to keep the equipment cool enough.

There is also a quite big risk when make a secondly install of Windows XP after Windows Vista or Windows 7 - That will cause the Boot manager to disappear from the startup screen and the start alternatives with entries will be gone.

If this happens, just make a search online "how to reinstall Windows 7 bootloader" because that what need's to be done afterwords "if having bad luck" Make sure having the CD reachable for commands like Bootrec & Fixboot (Don't remember it exactly so check it up). Tools like the WinRE on the CD might work as well.

Don't worry, nobody has to reinstall Vista or Windows 7 just because of this as it is not necessary and only lot of extra work.
Everything is where it should be and the system is fine on the harddisk.
It is only the entries into Windows 7 and the bootloader that has to be repaired in MBR. Afterwords the boot manager will show up again and show the way in how to start your machine. When it's back, it's a good tip to install EasyBCD in Windows 7 to reorder all the start-entries for additional partitions and dual boot setups.

When wrote this post the bad luck striked me so this became my second attempt (lost all text)