- the Windows 7 installer shows the blue background after “Starting Windows”
- You are still able to move the mouse pointer
- You do not actually have and FDD (Floppy Disk Drive)
Reset your computer, enter the BIOS, and check that your settings regarding FDDs are set to “Disable” (or “None”, depending on the BIOS).
It’s as stupid as it sound and it cost me 30 minutes.