Windows 7 Giving Error Mscd001

I have a emachine e725 running windows 7 32bit and a acer running on windows vista. My emachine recently crashed in the blue screen and I tried to complete a system restore. I was able to get through the advanced boot menu and use the repair your computer option to restore windows. During the windows setup process I got another blue screen and the computer restarting. It then started the process over and once it got to the step that says windows is preparing setup, it gives an error msg saying something along the lines of windows was interupted and needs to restart to complete installation, and it has an option to press ok. This cycle continues and I can not open in safe mode because it says "windows can not complete the installation in safemode. Also the option to repair your computer in the advanced menu options is no longer available. So after wrestling with windows starting up I decided to create a back up and restore disc on my acer for my windows 7 computer. I tried putting it on a disc but it would not boot. So I tried creating a installation disc of windows 7 and tried booting from the cdrom drive. Once I did that I got a error msg saying "device driver not found: MSCD001 No valid cdrom device drivers selected. It then gives me the A:>. Im not sure if I created the disc wrong since I cant unzip the entire file I downloaded with needing an encryption password.