0x80070017 is a common error code for both Windows 7 and Windows 10. First of all, the installation media is faulty. Re-download the media and perform the installation of Windows.
If your Windows 7 is pre-installed, maybe you have a recovery disk. If that is not available, install using the downloaded Windows 7. You can get it on manufacturers portal or from any of the download links. Likewise, you have to check the exact version of Windows 7 prior to download. There are also 32 and 64 bit Windows operating systems.
Microsoft provides a media creation tool to setup the download process. It requires system space and good internet connectivity. While installing Windows 10, it shows you the options to choose the version. Windows 10 requires 16 GB of free space to do the installation. In contrast, Windows 7 only requires 4GB free space for installation.
Bad media is the corrupt version of some hardware like DVD or USB flash drivers. Another reason is the bad media of the hard disk. There are Hard disk sentinel programs to scan and detect the errors on Hard disk. The scan process lets you know the corruption parts of the operating system and the check desk feature provides the hardware health information. The bad sectors on the disks cause this issue primarily.
Windows update affects with the same error code 0x8007001. It is due to the bad sectors again. Furthermore change in the disk is the best option to re-install Windows and perform regular updates. Maybe sometimes, the product activation does not succeed in changing the hardware. In such cases, you can request new keys or check the label on the computer to verify the product key.
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