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The blue screen is due to hardware problems, or any software (could be drives) that is stopping a hardware form functioning properly.
Try giving ur PC to some another technician or pc geek and ask him to find/fix the problem.
If HP is really offering you a I5, so they get to keep your i7 and do the adjustment themselves fix and keep your i7 and you end up with a i5.
If it is software problem, try formatting your pc and make sure you install the correct driver files this time.
i.e compatible with the OS and make sure it is updated.