Since the hard drive that you cloned was failing, throwing "multiple read errors", you report, it is likely that there are missing or corrupt files. It would be wise to re-install the operating system on the new drive. You also report that the machine is a netbook and has no CD drive.
To install Windows 7 you can set up using a USB bootable flashrive. You need a valid product number/serial number for activation. And a source for the Windows 7 files.
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