I'm in the middle of solving similar problem.
I downloeded Win 7 two days ago from "Wired" link, burned it to DVD, and I attempted install today, using VMWare. The installation kept freezing at "Starting Windows", and actually it was even freezing my computer.
At first, I thought, maybe formatting virtual partition in SCSI was at fault ( I had this problem with installing 7 pre-beta), so I created new partition, using IDE.
Same problem.
I thought, bad download, so I started new download, before I saw this thread.
I'll try 3 things, when download is done:
1. Burn at normal speed
2. Burn at slower speed
3. Install from .iso on hard drive
P. S. With Win 7 pre-beta, switching from SCSI to IDE, solved the problem. Pre-beta DVD was burned at normal speed, and I installed pre-beta from DVD, not from .iso on hard drive.