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How many drives do you have? And how many partitions?
Unplug drives that you are not using.
Try install again.
If you've downloaded Windows 7 installation files onto a USB flash drive, insert the drive into your computer. Setup should start automatically. If it doesn't, click the Start button, click Computer, double-click the drive, and then double-click setup.exe
On the Install Windows page, click Install now.
On the Get important updates for installation page, we recommend getting the latest updates to help ensure a successful installation, and to help protect your computer against security threats. Your computer will need to be connected to the Internet during Windows 7 installation to get these updates.
On the Please read the license terms page, if you accept the license terms, click I accept the license terms, and then click Next.
On the Which type of installation do you want? page, click Custom.
Choose the partition containing Windows XP (this is often the computer's C: drive),
Use the advanced options and format the partition or the drive you want to install windows on.