I noticed this ages ago, but someone else complained that they have just suffered from the same problem...
This problem is 100% repeatable on 3 different system and using different XP Install ISOs.
A notebook (not sure if this is important)
Notebook is installed with standard Win 7 (x86 or 64-bit - both are affected) - freshly install
Boot from E2B USB drive to Windows XP standard Install ISO to run stage 1 of Setup.
XP Blue screen is displayed and Setup starts to load the ramdrive and files from the ISO
XP Setup displays the Press F6 prompt
XP Setup displays the Press F2 prompt
(if reset at this point with CTRL-ALT-DEL then all is still OK)
XP now gets to the very first user prompt screen 'Welcome to Setup' and get choice of [ENTER] Repair or F3=Shutdown
If I now press F3 at this point and reboot to the Win 7 internal hard disk I get BSOD
Error 0xc000000e 'Boot selection failed because a required device is inaccesible.'
Complete power removal of adapter and battery did not help.
This has happened repeatedly on two of my notebooks (EeePC with non-SATA HDD so no Mass Storage Driver used, and Acer Aspire 7740G with SATA controller so a Mass Storage Driver was used). Also happened to a new user of E2B (which is why I looked at it again today!).
I fixed it by booting to the Win7 Install ISO from E2B and running bcdboot in a console - e.g.
bcdboot C: /s D:
where C: was the hidden system partition and D: contained the Windows OS.
(The user fixed his by running Hirens and using a Win 7 fix app and then running the standard Win7 Repair.)
When I then rebooted from the internal HDD, I got two BCD menu choices - both 'Windows 7'. The first one worked fine but the second one (presumably the original one) gave the BSOD error as before.
A bcdedit output is attached.
I haven't fully tested it, so cannot be sure, but I have only noticed this issue when the original OS is Win7 (i.e. not WIndows 8 or XP).
Any ideas why this should be happening?
I will experiment using Rufus next and WinSetupFromUSB to see if they exhibit the same behaviour...