Ah now that would explain it! Why couldn't you just download an ISO directly? But then again I shouldn't be surprised, Microsoft don't generally tend to make these things easy.
I've got this, bought the Professional version as opposed to the home edition (My Uni uses a Virtual Network so I can access my files from home) and I have to say I had no hassle with it - apart from not being able to create a bootable disk XD although i'm certain this was my silly mistake rather than anything else. I can't complain for £30 really, and Windows 7 looks amazing. Well worth it I think.
Most certainly XD Although it matters not to me at this point - i just installed it to my secondary hard drive. Although I am now having issues formatting my original c drive =/