@tf Starter is a x86-only SKU (provided you're not considering unofficial channels). In case you're trying to boot from a x64 ISO, then Home Basic is the lowest possible SKU that your can install.
@Tito Thank you for your reply. No I am booting from a x86 ISO. My laptop's CPU is by design a x86 processor and does not support x64 OSs.
@tf If the laptop in question came with Windows 7 Ultimate out of the box, then the CPU should be x64-compatible. Back to the original query, guess you're using an official Windows 7 ISO? Can you please share a screenshot of the error screen after removing the ei.cfg altogether and attempting the installation process?
Machines of that vintage stored slic table in bios, but not a built-in key for any particular edition. What happens if you delete both ei.cfg and pid.txt from the installation source?
@CaptainKirk1966 When both the ei.cfg and pid.txt files are deleted from the installation source, the Ultimate edition is automatically installed, without any prompt to choose an edition.
First, if you think W7 starter is lighter than other editions you're basically wrong. It's just limited, not light. Use ThinPC if you want a light but functional W7 installation. Second why you are still stuck to 1990 procedures? Forget setup, deploy the image you need using dism, imlib, imagex. Or the newbie friendly winntsetup.exe
The problem solved! I could install Windows 7 Starter by NOT updating the Win7 ISO file prior to windows installation with the UpdatePack7R2. Updating the offline Win7 ISO and then converting the edition to Starter (through the ei.cfg file) causes the above mentioned problem.
Thank you very much @acer-5100 . Actually I never heard about ThinPC before, upon your recommendation I did research about it and installed it! I love it, it seems much better than Windows Starter for a low spec PC.