Upgrading Dell Dimension E521 to Windows 7

I am working on a Dimension E521 32-bit Windows XP machine and I am trying to upgrade to Windows 7.  I chose Custom Install from an upgrade disc.  Once the computer rebooted it got to the Windows splash screen and stayed there for about 10 minutes.   I then got the following BSOD.

0x0000007b (0x80786B58, 0xC0000034, 0x00000000, 0x00000000).  There is no other useful information on the BSOD.

I have scoured the internet and found that this could be the hard drive controller or the drive itself.  Dell's site does not list this model as being Windows 7 compatible even though Upgrade Advisor passes the system specs.

System has a AMD 64 3200 Processor, and 4GB of RAM.

Any and all help is appreciated.