I've tried Windows 7 PE (PE 3.0) and it is the same situation. This time it freezes on the 7 boot logo.
On one system it works but not on the other.
Is it a laptop or desktop ?. Have you tried booting a bare born WinPE 3.0 or Windows 7 setup on that system ?. If Windows setup also hangs at the logo screen, it could be either compatibility issue between the system and Win7 or some hardware problem (ie, RAM or HDD).
Some of the newer laptops are not compatible with "Windows 7". They may either hang at boot logo or display BSOD message. I have also seen laptops which has OS selection option like the one below.
The above screenshot is from an Asus laptop. Modern Lenovo laptops also have a similar option in BIOS .Selecting "Windows 7" will cause Windows 8/10 to halt/BSOD and selecting "Windows 8" will prevent "Windows 7" from booting. Nowadays it's not possible to create a single PE boot disk which will support all Desktop/Laptops out there. My USB stick has two PE boot discs - one is based on WinPE 4.0 and the other is based on WinPE 3.1. As i said earlier, "WinPE 4.0" supports most systems and if it failed to boot, i will try "WinPE 3.1". If both PE discs failes to boot, i would start looking in to possible hardware failures. Most cases, it's the hard drive - that's my personal experience.