I got it working last night. I'll explain how I did it so it may help someone else out.
First I booted the laptop from a gParted CD (still odd to me that it will boot CDs but not DVDs), and wiped out every existing partition on the drive. I connected it to another PC running windows and use Fixmbr.exe to wipe GRUB from the drive. Then I created a 10gb FAT32 partition, and a second NTFS partition with the rest of the drive. I mounted the W7 DVD, and copied the contents to the FAT32 partition. When I booted from that partition the bootloader ran and I was able to install W7 to the blank NTFS partition. After that I wiped out the FAT32 partition and expanded the NTFS one to the whole drive.
The only issue I have now is that after playing with it for an hour or so, I got the well-known NTDLR missing message upon bootup. That should be a pretty easy fix ... if I remeber correctly I just need to repair the MFT and that should take care of it.
Thanks everyone for their assistance and suggestions, and hopefully anyone else with this issue will be able to get up and running a little faster now.