Re: iastor.sys BSOD
It's possible that the Dell installation is corrupt. From what I gather, you're installing Windows 7, not from a Windows 7 DVD, but from the Harddrive, is that correct?
If so, I would try to install again using a Windows 7 DVD.
If memory serves me correct, there's no way to install additional drivers during the Windows installation like you could with Windows XP (Press F6 to install storage drivers). If a regular Win7 installation fails at the same point, well then, you will need to inject the iastor.sys file from a separate download into the appropriate folder on your machine and see if that works.
Before reinstalling using the Win7 media, I would try injecting the .sys file using the links I posted above.
Humans are the only creatures that won't live up to the their potential. Give everything your all. When you die, die on E.
So I ask you, what do you intend to do now?