The upgrade was not successful (reboot loop)

We recently noticed an issue which was being reporting in our Microsoft Answers forum when upgrading from Windows Vista to Windows 7.  After attempting the installation, some customers are seeing an error message saying…

The upgrade was not successful.

Your previous version of windows is being restored.

Do not restart your computer during this time.

…however the computer does not restore the previous version of the operating system, but instead generates the same error message and puts the user in to a restart loop.

Our monitoring of the online community issues has allowed us to quickly identify a potential problem which may be causing this issue, and provide a workaround solution…

How to fix the reboot loop problem when upgrading to Windows 7

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