windows 8 cannot install on a dynamic disk?

i tried converting to basic using EASEUS and this is what i got.
should i have proceeded?

with partition magic(the old version that you and shawn suggested),here is what i got..i think there is some progress
am doing it from within windows not from a bootable CD.

From the mess you had, you only needed to delete the excess partitions before Converting. Then you can convert C to Logical and add any adjacent Logical partitions you want.

If you deleted and resized first before Converting you are in uncharted territory. Make sure System Reserved remains marked Active then if Win7 won't start after conversion run Startup Repair - Run 3 Separate Times.

This is the procedure we've been recommending here for nearly three years after early trials of converting the other bootable HP partitions interfered with their boot. C is the only partition on preinstalled HP that's not bootable, and an OS can always be installed to a Logical partition if there is already a Primary boot partition.

I would be remiss if I didn't mention at this point that most tech enthusiasts would never run the bloated HP preinstall but choose to Clean Reinstall - Factory OEM Windows 7
so read it over if you want to continue with a more positive learning experience.

You lost the OEM Diagnostics tools partition at the end of the HD because C was not converted to Logical first before adding the two Logical partitions.

This means that bootable diagnostics cannot be run from onboard unless you run HP System Recovery to reinstall the OEM partition then correctly convert to Logical and Resize C to add the new Logical partitions.

At that time you could also choose HP Minimal Recovery to get close to a Clean Reinstall, or you can choose to do the superior Clean Reinstall.

I lost the HP tools partition because I had deleted it earlier in an attempt to reduce the number of partition. The problem now is getting it back. I can recreate it by reinstalling the HP system diagnostic UEFI but it displays an error saying I already have the maximum number of partitions allowed(4).
can I convert one of the primary drives now?
Shawn great news in deed. Am on windows 8 now.

I'll repeat it for the third time:

With HP's preinstall, to keep the System Reserved, Recovery and OEM Diagnostics Tools partitions bootable, what works best is to convert C to Logical and then shrink it to add as many adjacent Logical partitions as you want.

Now what exactly is the question?

Greg, my question is can I convert right now after I made the HD basic?
I've tried with EASEUS but it says it can't convert since 'c' bootable("system or boot partition cannot be coverted").

Shawn you see am not the one to recreate the HP_tools partition. It can only be created by the HP system diagnostic UEFI through reinstallation(its already there so it just overwrites the existing files).
when it reaches the point of recreating the partition it shows an error which says that I already have the maximum number of partitions allowed i.e 4.
I have 3 primary partitions and 1 extended--I hope am getting it right
but method 2 might work(I already have the bootable cd from the .iso file I made)