If you continue to have the extraction error as you say, I would go ahead now and ask for a DVD, but try redownloading the thing. I have been looking for a tutorial about how to install student type downloads. But basically the .exe file it there to unpack and put the install files in a folder. Then you normally start the install from inside your current OS.
If you can download the .iso you might do that so if you need to put it on a flash drive, you can.
Is your current OS and system x64? If not, you will at least have to boot to install on a 32 bit OS, of course it will not install on a 32 bit system.
I would expand the files or move the folder afterward to a place it can be accessed but still available in case the computer does not finish the Win 7 install.
Win 7 can also not be upgraded from 32 to 64 bit, but there are other restrictions depending on the type of your original OS. In many cases you will have to do a custom install which basically removes and saves the old install so you will not be able to use you prior programs. Backing up is always a good idea.
An inplace upgrade where you will still have your older programs is possible, depending on your situation, but not recommended.
Operating System Win 7 x64
Computer Type Homebuilt
OS Service Pack 2
DirectX Version 11
CPU Type and Speed i7 3770K
Motherboard Chipset Asus P8Z77-V Pro
System Memory Type 16 GB Kingston
Video Card Type and Speed Nvidia GTX 680 (2)
Computer Monitor LG 27" (3)
Hard Drive Kingston 240 SSD
Optical Drives LG WH12LS30 Blu-
Modem-Router Type Linksys E3000
Network Adapter Intel Gigabit
Anti-virus Software MSE
Computer Skill Level Average Ability
Windows Experience Index 7.7