Windows 7 DVD doesn't boot up, neither does USB.

My problem is that I'm not able to install windows 7. Been trying to install this since past 1 week. The methods I've tried are:

1. I have a windows 7 bootable DVD which doesn't boot up. (I've set BIOS to boot from DVD ROM first but it just won't boot from the DVD).
   Tried to install Windows 7 from the same DVD to a friend's PC and it worked. So the DVD has no issues.




2. I tried to run 'Setup.exe' from within the DVD. The two options pop-up 'Check compatibility' and 'Install now'. On clicking install now, after sometime, an error is encountered with the message 'Windows was unable to create a required installation folder' error code:0x8007000D.
   I am running Windows XP Professional and there's only one user on the PC which is the Admin, so I do not know why is the setup not getting permissions. I've also uninstalled my antivirus, CD burning software, disabled firewall and disconnected all other devices, but its still the same.




3. I tried to install it from a USB device by making it bootable but that too doesnt work. (Yes the motherboard supports booting from the USB).
   The problem is that XP does not recognize a 'USB' device on boot. Rather it shows this USB stick as a removable 'Hard Drive'. Furthermore, i changed the order of Hard Drive boot to boot from this removable Hard Drive first, it still boots my existing OS.

Is there anything else that can be done? Any help would be greatly appreciated.

Please ask if any other information is required, this post is becoming increasingly long to add any other details.

PS: I want to dual boot windows 7 with my existing XP, but that would be after i manage to run the windows 7 setup in the first place.

PPS: Please bare with any 'not-so-technical' terms, I am a beginner with this. Again, thank you for taking the time and trying to help, really appreciate it.