Lion 10.7.5 Recovery install loops and will not complete install.

Hi on my Mid 2009 Macbook Pro with 8GB Ram it seems that a virus got into the system and was causing Safari to crash then affected iTunes, MS Word 2008, and others to malfunction.
Steps taken:
1. Started in recovery mode on Recovery Partiion selected and recovered from TimeMachine backup
2. On start up checked Software update and said All Up to Date.
3. Safari still quiting unexpectedly.
4. Started in recovery mode on Recovery Partiion selected and Installed new OS X Lion from recovery. This would not complete after 2 attempts was starting to loop. It will show the blue bar that it has 2 hrs 22 min, 1 hr 11 min, 34 min 32 ...etc then after 2 min it will then say -1,384,587,231 hours to complete, then go back to about 34 min. the blue bar is filled 100% at this point. Then it will do it all over and over again.
I restarted and things appeared to be working okay. I left the computer on with one web page and a Word file open while I did work on another computer. It started a new Time Machine backup and seemed to be doing fine. Then I heard it restart itself! I checked to see what would happen. It showed the grey progress bar below the apple logo like it is starting in Safe Mode, then the progress bar disappeared before completing and it just shows the spining icon for over an hour? It appeared to be screwed. I shut the computer off and same result to restart.
5. Started in recovery mode on Recovery Disk usb drive selected and erased Hard Drive to Mac OS (Extened Journaled).
Tested OK after erase.
6. Ran Recover Lion again, and again and again same result.
7. Left running overnight, and still running the loop and not completing.
8. Reset SMC
9. Reset PRAM
10. Erased hard drive again formated Mac OS (Extened Journaled)
11. Started in recovery mode on Recovery Disk usb drive Installed new OS X Lion from recovery - Same result loops and Never completes
12. downloaded RecoveryDiskAssistant.dmg and created a new Lion Recovery usb
13. Erased hard drive again formated Mac OS (Extened Journaled)
14. Started in recovery mode on Recovery Disk new usb drive Installed new OS X Lion from recovery - Same result loops and Never completes
That is where I am at at this point. The drive is new (within 2 months or so since installed) and it reformats okay and seems to test okay in Disk Utiliy
I had also used the Terminal to run diskutil eraseDisk HFS+ MacHD "/Volumes/disk0"
This did erase the disk and had tried Lion recovery install again and still fails. I would even try Mountain Lion, but have not upgraded to it yet. I think I need the computer working to purchase and install it.
I checked the TimeMachine back up disk on my iMac and disk utility says it needs repairs, when repairing it just goes and goes with no result and does not seem to be able to repair.
So at this point I would like to just get the laptop to install an operating system and work. Then I will see if there is a way to recover files on the time machine back up disk.
Any help would be very much appreciated.
Thanks,
Ben

I have even reinstalled Safari to no avail.
The only way to reinstall Safari on a Mac running Lion or Mountain Lion is to reinstall OS X using OS X Lion: About Lion Recovery
You mentioned that you have v10.7.5 installed but I see v10.8.1 in your profile ??
Exactly which OS X is installed ???
Troubleshooting suggestions may be based on that information.

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