Even if you transfered Win 7 Starter, You would really need to Upgrade it.
If not upgraded, Visata (with all updates) would probably be a better option than win 7 starter.
Use a copy of vista to re-install vista on the HDD from the "dead" Laptop. DO not enter the Key during the Installation. After the Installation is completed, then Enter the key and activate.
If you can afford it, then buy a copy of Windows 7 premium and Upgrade the Vista.
You can do this straight out, buy an Upgrade windws 7 copy and use it to do a "Clean" Install. This is Legal as you own the qualifing OS - It Does NOT have to be Installed.