Summary
Notice: As of February 6th, 2015 the links to the various versions of Windows 7 listed in step #1 below are no longer functioning, as an alternative (as long as you have your "Retail" product key, OEM key will not work) you can use the link to Microsoft's Software Recovery web page:
http://www.microsoft.com/en-us/software-recovery
After you verify your product key below, you will download a disc image (ISO file) and use it to create a bootable USB or DVD using steps #2, 3 and optionally step #4 below.
Note: You may receive a notice to contact the PC manufacture if you have an OEM key that came with your computer, but it can't hurt to try.
You can also try the links in step #1 from time to time to see is they return to an active state.
Details
1) Download the appropriate Windows 7 .ISO file which includes Service Pack 1
(Note: must match what your product key version is for)
How to find out if I have a 32 or 64Bit version of Windows installed on my computer:
http://windows.microsoft.com/en-us/windows7/find-out-32-or-64-bit
Windows 7 Home Premium 32Bit: http://msft.digitalrivercontent.net/win/X17-58996.iso
SHA1 Hash value: 6071b4553fcf0ea53d589a846b5ae76743dd68fc
Windows 7 Home Premium 64Bit: http://msft.digitalrivercontent.net/win/X17-58997.iso
SHA1 Hash value: 6c9058389c1e2e5122b7c933275f963edf1c07b9
Windows 7 Professional 32Bit: http://msft.digitalrivercontent.net/win/X17-59183.iso
SHA1 Hash value: d89937df3a9bc2ec1a1486195fd308cd3dade928
Windows 7 Professional 64Bit: http://msft.digitalrivercontent.net/win/X17-59186.iso
SHA1 Hash value: 0bcfc54019ea175b1ee51f6d2b207a3d14dd2b58
Windows 7 Ultimate 32Bit: http://msft.digitalrivercontent.net/win/X17-59463.iso
SHA1 Hash value: 65fce0f445d9bf7e78e43f17e441e08c63722657
Windows 7 Ultimate 64Bit: http://msft.digitalrivercontent.net/win/X17-59465.iso
SHA1 Hash value: 36ae90defbad9d9539e649b193ae573b77a71c83
2) After downloading the correct .iso file install HashCalc and validate the SHA1 hash value is correct.
HashCalc: http://www.slavasoft.com/hashcalc/index.htm
(Note: If the download is not corrupt, the value HashCalc returns will match the SHA1 value I posted)
a) Launch HashCalc and navigate to the location of the .iso file you downloaded.
(The default download location is: C:\Users\User account name\Downloads)
b) Remove all check marks from the list of HashCalc options except for SHA1.
c) Click the ‘Calculate’ button and wait for the SHA1 string of letters and number to be displayed.
3) Next use ImgBurn (or Gear ISO) to create a bootable DVD.
ImgBurn: http://www.majorgeeks.com/files/details/imgburn.html
Note: When installing ImgBurn, choose the "Custom Installation (advanced)" option and remove the check mark(s) to eliminate unwanted options, including Optimizer Pro (I do not accept) which is not needed.
Burning ISO Images with ImgBurn article: http://neosmart.net/wiki/display/G/Burning+ISO+Images+with+ImgBurn
(The steps are the same for Windows 7 or Windows 8), except you are not creating a Repair disc but a full installation DVD)
Note: Always use high quality DVD+R media and the slowest burn speed (4x or 6x) if offered a choice.
Note: Skip to step #4 to create a bootable Flash / Thumb drive.
4) For instructions on creating a bootable USB Flash drive to install Windows 7:
Read: http://www.sevenforums.com/tutorials/2432-usb-windows-7-installation-key-drive-create.html
Or: http://arstechnica.com/business/2009/12/the-usb-flash-drive/
Optional software to create a Bootable Windows 7 DVD