New
#11
here are a couple of KB articles that may help troubleshoot the problem:
You cannot select or format a hard disk partition when you try to install Windows Vista, Windows 7 or Windows Server 2008 R2
Error message when you try to install Windows Vista: "Windows is unable to find a system volume which meets its criteria for installation"
here is a boot cd that might be useful if you can burn it from another computer or load it on a flash drive:
UBCD for Windows