I have done over 25 installs of Windows 7. It always best to disconnect any extra hard drives until you finish the install of the OS. When you have finished the install, reconnect the hard drives and your good to go.
I noticed that you have two 160GB drives. For the primary drive I would recommend that you make one partition of 64.1 GB or 65639MB, and then the remainder of the drive as the other partition. When you install Windows 7 to the 64.1GB partition it will automatically create the 100MB partition and leave a 64GB partition on which it will install itself. For the other hard drive, after the install is complete and you've hooked it back up, make a small partition on it for your Paging File. It should at least be a little bigger than the total RAM you have. Such as if you have 4GB of RAM, make the Paging File partition 5GB and then transfer the Paging File from the primary drive to the second drive.
Windows likes it better when the Paging File is on a separate drive, and you want it at the front of the drive where the platter speed is greatest and access if fastest. I have had very good success in doing it this way.