I went into trouble of finding a solution to format my old PC which uses Intel D865PERL motherboard. The only option left is to format using USB Flash Disk method which the motherboard supports, though it does not recognises flat file structures of the USB Flash Disk. I had 2 failed DVD drives so the only option left is through USB.
However, turns out that with Production 21 (P21) version of BIOS, the motherboard cannot understand a normal Windows Preinstalled Environment (WinPE) structure and it keeps giving a Boot Error as it does not understand how to read the bootmgr normally.
Therefore, after couple of days figuring it out, I managed to use FreeDOS to boot up a WinPE ISO image stored in the USB Flash Disk, installed Windows 7 on it, and let manage to get all components to work and successfully completed my Windows 7 32bit installation on the old PC.
I have detailed out the ways and method to prepare and install your WinPE on old motherboards (which mostly affects Intel boards) should you encouter unable to read boot file error when attempting to perform normal Windows boot from USB installation.
This workaround works well and once it is able to install the simple setup files it will ask for Media files to be loaded and gives an error that it cannot detect the necessary media to load drivers (your USB Flash Disk with winpe.iso Image file), you will need to switch to the normal USB Flash Disk with all the bootable flat file structure files (prepared using WintoFlash or RMPrepUSB, called PD2 in this guide).
Here is the guide and good luck.Read More