Restore Operating System failed

I have an Acer Aspire One netbook with Windows 7 Starter. When I switch it on it goes immediately to Startup Repair, says that repairs were not successful and the computer cannot be repaired, restarts and then does the same thing again and again. I was advised to reinstall Windows using the option to retain user data. When I do this, the progress bar remains at 0% for some time and then this message comes up:


"Restore failed - error code=0x45d (WIMApplyImage cannot apply image : The...

Restore Operating System failed