I reformatted a netbook and it ran the setup fine. Until the step where it makes you set up username, password, etc.
Windows popped up a “Windows setup could not configure Windows to run on this computer’s hardware.” error.
It’s not yet the end of the world. There’s a solution!
Hit Shift+F10 on your keyboard and it will bring up the command prompt.
Type cd.. twice and it will bring you to the root directory.
Type Cd c:\windows\system32\oobe
Then type Msoobe
This will force windows to the OOBE (Out-of-the-box experience) setup.
I hope this helps!