Windows has encountered a problem...

So I've just booted my brand new pc for the first time, inserted the Windows 7 disk and as it was halfway through the "Windows is loading files" screen, I got an error message saying that this error can be caused by faulty hardware such as a hard drive or CD-ROM drive that is failing...

How do I know which one it is? Could it be the motherboard?!? HELP!!!
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  1. I found the problem, thank god it was the least of all offenders. The installation CD was bad :D
  2. 102501=100gb accurately.
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