0x8004240F error when trying to make a new partition.

0x8004240F I encounter this error for the very first time and it happens when I try to make a new partition to install Windows 7 on it using Windows 7 installer (not disk management!)
The harddisk has a legitimate Recovery partition of HP (which was active and primary) and another data partition.
It has 40 gb of free space. Even if I select like 1 or 10 or 20 gb it still gives 0x8004240F error.

I made several commands (after installing Windows 7) like bootrec /fixmbr /fixboot /rebuildbcd and they didn't detected the Win 7 I managed to install BUT I made it's partition in Acronis Disk Director suite.
After each restart Windows 7 wanted to start chkdsk on drive C (the Win 7 drive) automatically. Also the system thinks there is an older version of Windows but there isn't.
The partition I created with Acronis was reported Primary in acronis, BUT in Win 7 installer it was reported as logical... Currently it is reported as Extended.
Paragon partition manager reported that some partition overlaps another and this must be the key to solving the problem. But why fixboot and fixmbr didn't helped? I even tried them on the other data partition. I haven't modified the Recovery partition only made it hidden and not active.
How to check the partition table for errors and fix them so Windows 7 won't get this error?

I think you'll need to wipe the disk with zeros (dban or diskpart clean all), but thats just my opinion.

Slartybart said:

@Rhapsody: Could you post a snip of you disk management? Did you make your disc copy of the recovery parrtition - do it now if you can.
Can you do a factory restore - this will wipe your disk, so backup all of your data. Then make your recovery disks if you couldn't before, because I'm going to tell you that you have to delete the Recovery partition. Why? Because OEMs in their wisdom use all of the available partitions - you have to free up the 4th part to make extended part. I also shrink the huge c:\ part, then I can make logical drives in an extend part.

Let me know, ok?

There wasn't a fourth primary partition because the Tools partition was not on the disc :). So this wasn't the issue.

Problem solved without having to backup data and format the whole disk.
I used Extended Fdisk located in Hiren's Boot 10.6
I made a new primary partition from those unallocated 40 gb and it asked me did I want to update the partition table. I choose yes. After that a second question poped up and I could not recall correctly what it asked me. I think it was to update the whole partition table which would erase all the data or something. I choose no and after that before leaving Extended Fdisk it asked me to commit pending operations and I choose Yes. It take several seconds to update the partition table. After starting WIn7 install again the partition I made with Fdisk was detected as System and Primary. I deleted it and make a new one to be sure it will be NTFS and that the installer will make 100 mb system boot partition and it did. No more automatic checkdisk :).
Also a strange thing happen before formating the Win7 partition. Check disk started automatically twice after one of the restarts. Both times it detected problems with partition C where Win7 was installed... It's like it thought there were two partitions on the same part of the disk.

I am glad if I help others too. There are many forums/threads with the same error (sometimes on Vista installer) but I don't think anybody tried repairing the partition table so this thread/solution must really help some people in the near future. Most people just format everything sometimes making backups taking hours... But after all backing up data is very important!