That's a bug with Win 7, there's a command line your going to have to run to get it beyond the frozen point, than all will work. They've known about it for years and refuse to fix it, even when Win 7 was still supported.
- Copy the file "OculusSetup.exe" onto your C: drive (not in any folder, just in the root).
- Open the command window by pressing the Windows button and typing "cmd" and press Enter..
- Type "C:" and press enter. When you are typing, don't use quotes (just type what's in between the quotes).
- Type "CD/" and press enter.
- Type "OculusSetup.exe /bypassHotfixCheck" and press enter.