you like me face the problems post Vista SP1 with 64-bit versions.
Modifying and using Imgburn via Jowie is best I know of to get it to boot and install.
There are always issues with native Boot Camp Windows updates and a VM like Parallels as to whether you can or should apply any update whatsoever in a VM or stick to doing so natively.
Always have a backup image to restore from for ANY OS.
Paragon Software Camp Tune and the great Hard Disk Mgr 12 Suite which will perform an "Clone OS" migration to another disk drive.
For convenience never share a hard drive with Mac and Windows. Esp. for you and I. Dedicated drive only.
WD Lifeguard in Windows is great at mapping out bad sectors.
Use Carbon Copy Cloner to image your Mac and the Recovery partition to another drive also.
You would then never ever have to reinstall any or either.
There are people on the Boot Camp forum where I burned out that you and I well... we've been over this before to the point I stopped and left.
Apple's BootCamp 4.0 64-bit from my attepms (I run Windows 8) will not install and I guess needs CMD.exe and direct it at Apple installer MSI program or Setup. I would not normally and not needed except for data and time and the Boot Camp Startup Manager in Windows.
you probably need to do safe boot, you may need to rollback to a restore point, run chkdsk again and use CCleaner on the Registry.
As I said, applying updates - you did not specify where - from the VM side is for some of those a not a good idea and safer on the Boot Camp side.
If you had a paragon clone OS you could always do a full restore too.
this is a fresh install of windows 7. there is no restore point.
it is a brand new installation of windows 7 on a boot camp installation on this mac pro. there is no parallels involved with this issue.
any idea on where to go or why this thing keeps trying to update windows? or any idea on whom to ask?