If you are transfering to Windows 7 from XP, the default "Shared Files" settings pull everything from your C drive that isn't there originally (ie Windows, Documents and Settings or Program Files). On top of that, each user profile selected will have their files and settings from within the User folder converted and transferred.
The only reason significant files would be missing is if he intentionally deselected them.
Given the OPs description, my initial thinking is that the MIG file corrupted somewhere along the way.
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