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case by case basis. There is actually some error checking logic deep in the CPU design. So if once in a while a wrong number is spit out the entire PC won't freeze. However, if you run stress tests like SuperPi or Intel BurnTest extreme, the tests will fail integrity due to errors in floating point calculations.

So I can actually install windows only to discover there is something faulty with my mobo/cpu?

In most cases it will fail, but sometimes its possible. Not only mobo or cpu but count it - every component might be faulty. Its a rare case with new builds but shit happens. Most common cases as I have seen in practice is dead mobo or faulty ram stick, rarely psu, cpu and gpu. Also first thing to check when you have DOA PC is PSU. No juice no computing.

For future reference, you can manually start a PSU by using an all metal paperclip,
here is a tutorial:
Turn on PSU without motherboard - the 'paperclip trick' | Lounge | APH Networks

That's usually the way most bench technicians would go about testing this. There is a 5 Euro fancy plug that does the same thing, but I've been using the same paperclip for PSU testing for 9 years.

Here is a link to the commercial solution:
FrozenCPU 20-pin Power Supply Jump Start Connector - FrozenCPU.com

So sofar after I got a new PSU everything has been kind of smooth. I managed to install PR without much problem - it still kind of looks like shit though...

And I never realised how good BF3 looks until I got to try up close

PR graphics only go so far lol