Thanks for the tips,
It appears that I cannot boot from a USB stick and USD HDD works but extremely slow. Both these methods work ok and install Win7 quite fast on my old laptop.
I had to resort to DVD, even that was sloow, its been a while so I forgot to diable the floppy, and what a difference that made to the installation time.
Anyway, back to the original issue of rebooting and rapid beeps.
After the rebuild, its still doing it and it appears that when I put the PC to sleep, it goes in Hybrid-Sleep, turns everything off, because of the reboot issue it never stays of and thats when the rapid beeps sound.