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Upon installation of new Windows 7 on a new HDD I installed on a SONY VAIO laptop, the system hangs at "setup is starting windows services. I receive an error message stating: "Windows can not access installation sources". Why am I receiving this error message? I formatted the new HDD using DISKPART and was successful in creating a partition. Appreciate any and all suggestions; thank you.

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As error is saying "Windows can not access installation sources". I think its not the problem of your hard drive.try changing your installation disk(windows 7 CD). I also used to get this stuck problem but when I change my installation CD it has solved my problem.

My advice is create a windows 7 bootable pen drive and install the OS from that.

for how to create bootable pendrive see this answer Booting into Windows from USB stick created on OSX

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