Install windows 7

Hi everybody. First of all I am new with all of this. Now down to business.
I have an acer aspire m1610
CPUE2140 Intel Pentium dual core
2gb DDR2 memory
nvidea gforce 8300GS
Windows Vista home premium.

I did have a couple of blue screens over the years but this time the graphics were all messed up also sharpness went away, and yellow accents of color everywhere. Now I could open it in safe mode . Tried everything I could think of, and at the end I decided to use eRecovery management to format it all and do a fresh new install. Now I found out I didnt have the Windows Vista install disk anymore.
I decided after hours of searching to go out and get a windows 7 home premium 32. I'm currently typing this on my laptop.
Now I cannot install it. It installs everything it, finds the disk and all and after the completion of the installment it restarts as expected and then it shows blue screen again. I dont understand anything about it.
Could someone please help me with this matter.

Thanks alot

Edit 18:40 7-2-2013
it is a desktop computer.
The symptoms are this:
when the splash screen appears with the "ACER" mark , the "ACER" mark is not smooth pixelcolor changes,yellow, then the 4 colors of microsoft logo appear and while glowing i see yellow vertical stripes over the logo. This followed by blue screen with error code:
*** STOP 0x0000016 (0x85A02008,0x8DCB7A80, 0X00000000
*** nvlddmkm.sys 8DCB7A80 base at 8DC0B000
 
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Maybe your laptop is overheating.

it is a desktop computer. How can i know it is overheating.
Anyway the symptoms are this:
when the splash screen appears with the "ACER" mark , the "ACER" mark is not smooth pixelcolor changes,yellow, then the 4 colors of microsoft logo appear and while glowing i see yellow vertical stripes over the logo. This followed by blue screen with error code:
*** STOP 0x0000016 (0x85A02008,0x8DCB7A80, 0X00000000
*** nvlddmkm.sys 8DCB7A80 base at 8DC0B000
 
Your bluescreens is caused either by the video card or the driver. What driver are you using?
 
it is not a driver issue, as he is having the problem at the bios splash screen with it not being as clear, and has yellow lines going through it.the driver isnt in use at that time. id deffinatly say its a video failure on a hardware level. meaning you will need to replace the video card. do you have a dedicated graphics card, or are you using the onboard integrated graphics? if your using a dedicated card, then pull it out and use the motherboards video output. if you are already using the motherboards video output, then you will need to get a dedicated card, although the problem could get worse and effect other areas of the board over time, if it is the motherboards video messing up.
 
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