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There is no difference in the software that gets installed after you select any one option but the Desktop Class option installs a single instance database without the advanced configuration options.<<http://docs.oracle.com/cd/E11882_01/install.112/e16763/whatsnew.htm#BGGIBGAB>>
On Win7, You might be to install oracle as desktop..
Pl confirm that you are following the steps in the Install Guide
and that you are logged in as a user with Admin privileges.
Others who have reported this issue indicate that instructions in install guide have not been followed.
Installer hanging on selecting Desktop Class
Re: Oracle 11g R2 installation problem
Re: Problem Installing Oracle Client 11g R2 64 bit on Windows 7 Enterprise 64
Trouble installing Oracle Personal in Windows 7 64-bit environment
Oracle 220.127.116.11 on Windows 7 x64 - fails when "Desktop Class" selected