Windows 7: Strange error upon installation Windows 7 Ultimate SP1 x64...

Hello guys,

Once more I'm here to get some help.
It's concerning a 1.5TB hard disk connected up to a Asus P5W DH Deluxe.

The disk was always partitioned as followed:
Partition 0: System preserved (100MB)
Partition 1: Windows partition (C: )
Partition 2: Music partition (D: 200 GB)
Partition 3: Backup partition (E: 947 GB)
Partition 4: OS installations from VMWare (F: 100GB)

Now I wanted to reinstall Windows 7 and deleted the partition 0 and 1 to "Unallocated space". Like always, I just click this 'space' and let Windows partition it as it wants itself. Always worked, but now it suddenly doesn't want to work. No matter what I do, i always get following error:

"Setup was unable to create a new system partition or locate an existing system partition. See the setup log files for more Information".

I researched it and many people talk about other hard drives being connected, iPod still connected etc. but that isn't the case here. I only have hooked up the PC with LAN cable, mouse and keyboard, monitor, DVD drive (SATA) and the hard disk (SATA). No other medium is inserted except the installation disk in the DVD drive.
Does anybody have a clue what this could be?

Oh, maybe some relevant information. I think it looks 'not good' but don't know for sure (not enough know-how about this part).
I started 'diskpart' within the installation and listed all the partition and got the following reported back:

Partition ### | Type | Size | Offset
-----------------------------------------
Partition 0 | Extended | 1397 GB | 8032 KB
Partition 1 | Logical| 199 GB | 149 GB
Partition 2 | Logical| 947 GB | 349 GB
Partition 3 | Logical| 100 GB | 1297 GB

The first line I doubt is not good. But like I said, don't know for sure.
Because at my laptop it's looking like this:


EDIT:
Some additional info gathered.
When I click the "unallocated space" and try to create a partition (within the installation setup) I get the following error:

"Failed to create a new partition on the selected unused space. [Error: 0x8004240f]."

Never had this before, going to search for some info about this right now.

Thanks already for the effort and help!

Use the clean command prompt to delte the partitions, than remake no more than 3 partitions.
SSD / HDD : Optimize for Windows Reinstallation

Yeah, I understand what you mean, but I do need the data that is present on the other partitions.
And I only have one 160GB external hard drive. With almost 520GB of data this will not succeed to backup completely...

Is it normal by the way when I boot into Ubuntu 11.04 LIVE and start up the disk utility it shows one extended partition spanning above all the other partitions?
Like so:
____________________________________________________
|...................................EXTENDED.......................................|
|__FREE__|___MUSIC___|_______BACKUP_______|___OS___|

Simply use a windows xp bootable disk to create the new partitions.

Likely boot sector corruption requiring wiping the HD. Move the data off first.

You can first try to create the partition and mark it Active to see if that works. Use Step 2.2 here: SSD - HDD Optimize for Windows Reinstallation

XP has a slightly different partition table so use diskpart steps above to pre-partition.