I still have not found out what is causing the issue, but after extensive search and trial and error, I have gotten past Windows 7 Beta to install on my desktop.
By copying the contents of the DVD to a thumb drive I was able to get it to install without throwing the “Windows could not collect information for (OSImage) since the specific image file (install.wim) does not exist” error. Seems a lot of people have gotten this error and the only solution at first was to burn a new disc or use another program to burn the disc and sometimes to use another disc drive. However this only worked for a few people as the disc will install on some machines and not others.
Rumor has it the disc will not run on some older optical drives. I think there is a bug in the image installer however, as the image I used loaded fine on an older laptop (almost 5 years old) but refused to install on a newer, much more powerful desktop that came with Vista Premium.
What ever the case is, copying the contents of the DVD image you get from Microsoft to a hard drive seems to do the trick for a lot of people. It worked for me. Let me know if you have any more information on this irritating issue.