The upgrade installer isn't playing nice for students.
Are you a student in need of Windows 7? Then you might want to look at DigitalRiver's offer for Windows 7 Home Premium for students.
Valid students can still grab a download upgrade copy of Windows 7 for just $29.99 – a pretty stellar deal if you ask us. All you need is to be part of an eligible college or university. Find out more here.
Unfortunately, some users who have purchased that upgrade are reporting problems when unpacking the files and trying to install on a 32-bit machine. So far there seems to be a mix of both successes and failures, depending on how many hoops the user is willing to jump through to jimmy that upgrade into his or her Vista install.
Engadget received a tip that Microsoft is now offering refunds to those who are having trouble in getting this product to work, but of course those who managed to snag Windows 7 for less than $30 likely won't be giving up so easily.
In any case, Microsoft has a support thread going where the company is trying to sort everyone out.
Did you grab the $29.99 deal? If so, have you been having any problems?

LOL
I was able to do a semi-clean install, moving all my stuff to a Windows.old folder to blow away later, so you aren't forced to do an in-place upgrade with all the potential problems that brings. My Win7 beta was running really slow so I ended up doing a clean XP install first with a re-format then immediately installing Windows7 over the top of that.
If you absolutely must have a bootable DVD to use, you can either download the Windows Automated Install Kit to make your own custom DVD or you can follow the shortcut directions at this link:
http://www.downloadsquad.com/2009/10/22/how-to-make-a-dvd-of-that-student-only-windows-7/
After all the comments this week claiming how much smarter Tom's Hardware readers are than the average Joe, a few work-arounds shouldn't be any problem, right?
http://www.sevenforums.com/tutorials/30470-make-bootable-iso-student-d-l.html
looks like its going to solve the issues, though I havent tired it yet to make sure.
Upgrade makes no sense because most likely you'll carry on the baggage from the previous install to this upgrade install.
I think anyone who answers "Yes" to that question is likely got bigger problems in life.
To fix this I went to http://www.mydigitallife.info/2009/10/23/how-to-create-and-make-bootable-windows-7-iso-from-exe-plus-setup1-box-and-setup2-box-files/ and followed the instructions to use the command promt to convert the files into an iso that would produce a bootable DVD.
They made it a pain when they could have made it easy by providing an iso from the start. I wasted time doing unnecessary problem solving before I came to this fix. I could have just spent the extra $13 and waited for a physical copy, but then again I thought I was getting an iso like the RC version of Win7.
so if you know someone with 64 bit machine just take your download to them and unpack there...then you can ISO and install!