|If you have not disturbed the restore partition then there is a method spelled out in the HP link below.|
You may have a hardware issue that is stopping the process, or your disks may be bad.
If you manage to recover to factory condition I suggest you contact HP and explain you made the disks but they don't work right. They may send you a set for free.
If they won't do that then you can make a total hard drive image using the built in tools in Windows 7.