Unable to install Win-7

I formatted a 300gb SATA hard drive from another Win-Computer.

Then, I set the DVD/CD to be booting device and then, tried to install Win-7 from original MS Win-7 CD.

After loading files and accepting the terms, it copied the files. But, it would not allow me to proceed with 'Expanding Files' and gives me an error '0x80070570'.

My processor is 64 bit. I tried both 32bit as well as 64 bit CDs. Both the installation attempts gave me same error.

I also have downloaded .iso file. But, don't know how can I use it.

How can I Fresh Install Win-7 on this newly formatted hard drive? Any suggestions?