You cannot upgrade Windows 6.5 phones to Windows Phone 7 as it is not backwards compatible.
If you are attempting it I assume this means you are trying to Root the phone, in which case, if it has caused a problem, aside from resetting it if you can you have probably broken it and in the process voided the warranty. Contact HTC for clarification however you may need to purchase a new handset.
Try running Last Known Good Configuration which should fix your problem.
Step 1: Shut down your PC completely.
Step 2: Turn on the Power button.
Step 3: As soon as you turn it on start hitting the F8 key on your keyboard until
you get to a black screen called "Windows Advanced option". (If you
don't get to that that screen but you end up reaching the blue screen than that
means you have delayed in hitting the F8 key. start again from step 1.)
Step 4: As soon as you reach "Windows Advanced option" use your down
arrow keys to choose an option called "Last know good configuration".
Step 5: Select that and HIT ENTER.
Step 6: your PC will boot to the windows. I
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