error 0x80070017 in windows 7 ultimate install

I have been recently trying to install windows 7 ultimate x64 bit onto my computer, and it installs fine until the point it trys to install updates, at which time I get the error 0x80070017 claiming that it cannot find the folder the sources are in. I did look in the sources folder and everything is there, well and good. What may this problem be?

I'm attempting to install into a 2tb sata hdd that has nothing in or on it from a DVD in an ide drive.

That error generally refers to bad media, or possibly a failing drive. I recommend you transfer the DVD's contents to a USB stick using WinToFlash, WiNToBootic or the like, preferably using a different drive. If that doesn't help, you've probably got a bad disc on your hands.