Booted back into OSX, installed NTFS-3G, went into the Win7 volume while in OSX, navigated to System32>Drivers, then deleted nvlddmkm.sys which allowed me to reboot into Win7 and complete the installation process. Then I went to the Nvidia site while in Win7, downloaded the driver for the video card (7300 GT) and everything worked out fine.
Hopefully this can be a good reference for anybody else with this issue.
Thank you SO MUCH!!! This helped me solve my problem!
For anyone running Lion that downloading the final version of MacFuse and the NTFS 3G drivers was enough to let me delete the driver. I was then able to finish windows setup & install the boot camp drivers.
I still need to verify if the boot camp drivers installed a new Nvidia driver or if I need to download from Nvidia, but right now I am much happier than I was an hour ago!
And my 8 year old son who wants to play some Windows games is MUUUUUUUUCH happier too!
Boo to MS for not letting me at least safe boot to the command line during setup to delete the driver that way.