does your motherboard have onboard graphics? If it does I would remove your gfx card and reformat then reinstall again without it, seems like a problem with the gfx card to me.
Regarding two operating systems being listed, sounds like you didn't format the drive before installing again, therefore the first W7 install and the second W7 install files are on the same partition (the new one will be in a folder called windows(0) or something), and the boot.ini (well it's not that in W7 anymore, but the equivalent) has added the second W7 installation to the boot.ini list.
could you list your system specs?