As for #7, when I run the Windows 7 installation disk, my only option is to "Install Windows". I don't think you want me to do that.
Reinstalling is almost always a last resort unless it is obvious that the OS is damaged beyond repair.
As for #9, I have a Dell Vostro 1015 and I ran the diagnostics on the recovery disk. That's what took 2 hours. Nothing happened when it finished. I now know that x86 means 32-bit.
Thanks for the clarification but I should have been more specific as we need to know the exact type of Windows 7 disk it is that you have;
What sort of disk is it that you have as in is it a genuine Dell branded Windows® 7 Home Premium (32Bit) disk, a genuine Microsoft Windows® 7 Home Premium (64Bit) installation disk or a burned copy of whatever type.
I looked at the ISO tutorial, but don't understand why that is needed or what it will do
You have not told us what type of Windows 7 disk it is that you have so for all we know it may not be the correct type or if it is a burned copy it may have been burnt too fast and so the data on it cannot be read.
If you have the 25 digit product key for the original Windows 7 OS that was installed on the computer you can download an ISO which will give you your own legitimate full Windows 7 installation disk.