Eu encontrei isso no log. Você selecionou "instalação limpa" em vez de Atualizar. Você não pode limpar a instalação usando a mídia de atualização.
DoComplianceChecks: CheckSkuCompatibility not satisfied (To upgrade from one edition of Windows 7 to another edition of Windows 7, use Windows Anytime Upgrade. Cancel the upgrade, open the Start menu, and search for Windows Anytime Upgrade.) 2012-10-10 21:45:13, Info [0x080021] MIG IsCompliantForUpgrade: failed
2012-10-10 21:45:13, Info MIG Callback_Compliance: compatibility report was skipped.
2012-10-10 21:45:13, Warning UI [APPCOMPAT UI] Got CallbackAppCompatProgress without compat progress page active 2012-10-10 21:45:13, Info [0x080043] MIG Callback_Compliance: Not a compliant system
2012-10-10 21:45:13, Info [0x08003e] MIG Not a compliant system, upgrade is disabled
2012-10-10 21:45:13, Info [0x090056] PANTHR User selected clean install option