Windows 7 Quick Installation Help?

I downloaded a Windows 7 Ultimate 32 bit torrent and I have a Vista Home Premium 32 bit PC. When I open the setup.exe and I click Install Now nothing happens the window just closes and reopens. I've tried running it as admin but still the same. Very frustrating, if someone can help I would be very grateful Thanks. Worshippy
P.S. It was an ISO file then i extracted it with Winrar then I ran setup.exe
Also I won't lose any data this way right?

burn windows 7 into a cd/dvd, then insert your windows 7 cd/dvd and boot up your computer. Then install from there.