When upgrading from Windows Vista to Windows 7 (by choosing Upgrade as install method), the setup installation process of Windows 7 may stop and hang at 62% indefinitely. Even if user restarts the Windows 7 upgrading process, the Install Windows wizard still stuck at 62% forever.

In the setupact.log, the following error message which is repeated every 15 minutes is logged:

<TimeStamp> Warning [0x080b50] MIG AsyncCallback_ApplyStatus: Progress appears to be stuck. Current progress: 62

The cause of the problem is that the iphlpsvc service may be hanging during the upgrade. iphlpsvc is one of the services that has been identified to be able to cause the issue.

For user who faces the exact problem as above, where the same kind of error message entries appear in the log file and installation hung at 62% percentage point, try the following workaround to get Windows Vista upgrade to Windows 7.

  1. Reboot the computer and the setup will automatically rollback the system to Windows Vista.
  2. Click Start, and right-click Computer.
  3. Click Properties, and then click Advanced System Settings.
  4. Click Environment Variables.
  5. Under System Variables, click New, and then press ENTER.
  6. Type in the following variable information:

    Variable Name: MIG_UPGRADE_IGNORE_PLUGINS
    Variable value: IphlpsvcMigPlugin.dll

  7. Restart Windows 7 Setup.

Alternatively, just perform a custom install of Windows 7 instead of upgrading, or clean install Windows 7 from upgrade media with upgrade license product key at blank PC.

Source