MacBook Windows7 install failing - ntkrnlpa.exe - "Windows failed to load because the kernel is missing, or corrupt."

Trying to do BootCamp Windows-7 install on my MacBook (running 10.5.x).

Detailed progress notes here. Latest: "Windows failed to load because the kernel is missing, or corrupt." (ntkrnlpa.exe) Hit `Enter` to continue, make next selection, but it comes back to error message. So shut down (power button) then reboot with Windows DVD still in there. Ended up with same error!