Hi
Thanks for you info.
1. I think from the snapshot,you are installed the OS Windows 2008 R2 which is not supported NW 7.0 SR3, You have to degrade the OS to Windows 2008 Enterprise version(Not R2). then you can start the SAP installation.
2. Are you using SWPM or SAPINST? if your are using SAPINST you have to use the kernel release 700 level minimum 300.
BR
SS