After getting in a new laptop, I wanted to restore the existing Windows 7 installation from my current laptop to the new one.
Booting with our bootable USB Windows 7 installer, and choose to Repair my system.
Windows found the correct system image on a external hard disk, so all looked fine - until the restore began:
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Bummer 
It seems that the bootable Windows medium itself is the problem.
Right before the last step in the restore process, you should remove the USB stick.
The restore goes off OK then