Today While installing Windows 7 on my friends computer Windows showed the Above error which says
Windows cannot copy files required for installation. The files may be corrupt or missing. make sure all files required for installation are available, and restart the installation. Error code: 0x80070017
As the message said, the issue is with your installation media. Can be two things
1. The installation media is corrupt. The DVD may have scratches etc.
2. Writing speed of the DVD. If you are using a copy of the DVD which you have created, you must take care of the writing speed. Make sure you are writing it to the lowest speed.
We created a new disc, with minimum writing speed. that’s it, installation went well.