setup was unable to create a new system partition error while trying to install windows 7
At the very beginning of the install process, windows 7 rc 1 throws an error in the partition selection stage that it is unable to create a new partition. No combination of deleting/formatting/etc of the partitions fixes the error.
In order to resolve the error, I restarted the machine and changed the boot order in the bios to boot directly from the future OS drive. After that, windows 7 installed correctly.
Thanks to arstechnica for the fix.
Categories: windows 7