Just to be clear, you are using an original, untouched, checksum verified ISO image to install windows?
I knew this day will come... Since when Microsoft decide to rename "My Computer" icon to something else I started to suspect my computer isn't mine anymore. Based in your detailed info I will try to reproduce it later in a virtual machine. I think that's a good time to bring back to life an old computer, install Linux on it and configure as a NAS/fileserver.