Hi,
I had the same problem and solved it as follows:
1-Before beginning the upgrade take a backup of the DP 7.01.
2-After the update fail back to my DP 7.01 with a restore.
3-As soon as DP7 was running , on Windows 2008 I went to start--> run--> msconfig-->enter.
This opens a window with multiple tabs, I went to the Tools tab, click on Chance UAC Settings and click Launch, another window appear, on that window put in Never notify, and click OK , reboot the server.
4-After that I start the upgrade again and it worked. (Always running as administrator the setup.exe).
I hope this helps.
Regards