Well, the only suggestion I can give you is to figure out a way to remove your HD from the desktop, plug it in as removable media to your laptop and backup what you need. Then put the HD back into your desktop, boot up and while booting press and hold F11. This will take you to the recovery manager. From there you should be able to reformat and reinstall Vista. Then, you can "try" to upgrade into 7, but I'm weary that it would work...
I never, ever upgrade to a different OS without doing a full version installation. If not done properly, they can be touchy and a huge pain in the ass. Sometimes you can even lose data, if you didn't back it up.
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