T61 blinking cursor hang on Win 7 install first reboot

[Nolonemo]

I am trying to do a bare drive intstall on a T61 (embedded graphics). Booting off the Win 7 32-bit Home Premium disc, setup starts ok, choose clean install and proceed with the install. On the first reboot, the system hangs with a black screen with a blinking cursor in the upper left corner.

The only thing I've found on the internet about this was a video driver related issue.

I should mention that I'm using upgrade media for the install. However, since I have done a Win 7 upgrade media bare drive install on another PC with no problem, I don't see why it shouldn't work on the T61. I did successfully do a test "clean install" on the T61 that had the Lenovo Vista factory load on the HD (but didn't use the key or activate), so maybe it is some kind of driver problem, but I'm amazed that Win7 wouldn't have all the drivers....

Any thoughts for a workaround?

[Nolonemo]

I got a successful bare drive install done, here's what I did.
Restore factory state.
Boot from partitioning software boot disk and delete restore partition and create second logical partition.
Boot from Win7 install disk and install to second partition.
Boot from partitioning software disc delete the first partition (that had the Vista install), and change the partition type of the second partition to primary
Boot from Win7 install disc and run repair a couple of times to fix MBR or whatever, so the Win7 install will boot.