Check for updates not working

Wait a minute, all the other components show a green check mark BUT the HDD is showing a blue flashing icon, what does that men please?
 
Just my luck, the owner only now told me that he has factory warranty on these units, after all of my headache and work yesterday. I wish I could start charging people for diagnosis.
 
The HDD testing icon was flashing all this time but it now looks like it was testing all this time as now it shows "All tests passed". So what now, if the HDD is good then what could be the issue which is preventing the OS from loading? I will try another win7 disk, get back to you.
 
It seems Installing win7 32bit version from both disks did not work. I installed the 64bit and all went as per normal and it's checking for updates right now. If all goes well, I will reinstall 64bit on the previous machine, will you know how all turns out.
 
I was using the onboard dell diagnostics but I am now done totally testing that pc, everything works to perfection now with the 64bit version. I am currently loading the first identical pc with 64bit, will let you guys know.
 
Same deal now with both pc's guys, they work to perfection and just to add to anyone's knowledge here, this is what I have found out:

Is this 32bit Windows? If the hard disk is formatted GPT then Windows 7 32bit will not install. Is 32bit currently on the computer? On newer computers with Advanced Format Drives Windows SP1 is required unless you add the drivers for the chipset during initial install. See this Seagate page.
 
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