Windows Vista will have been restored on the computer but the Boot Configuration Database (BCD) store has not edited to restore Windows Vista as the default booting operating system.

The computer will continue to boot to the Windows 7 Setup and then fail until the BCD database has been restored to its previous state.

To resolve these issues, select Windows Vista instead of the default Windows 7 setup when you see the boot entry menu and then follow the steps listed below.

1. Insert the Windows Vista Media into the drive and exit the Windows Vista Setup when its launched

2. Click Start, All Programs, Accessories, and then right-click the Command Prompt icon, and then click Run as Administrator.

3. Type the following command at a command prompt and press ENTER

Drive:\boot\Bootsect.exe /NT60 All
Note: In this command, Drive is the drive where the Windows Vista installation media is located.

4. Restart your computer

This will simply make Windows Vista the default booting operating system. The Windows 7 upgrade issue itself is currently under investigation by Microsoft. An alternative would be to perform a clean install (see Clean Install Windows 7 With Windows 7 Upgrades) and use the Windows Easy Transfer tool to transfer user settings and files to the new operating system. (Thanks Dante for sending in the news)