Install Error Setup was unable to create a new system partition

Necessary2bme

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I am having a problem with doing a fresh install of Windows 7. It is on a Dell Inspiron 1546 with a 150 GB hard drive. There was an original install but the computer was having issues as some files were corrupted. I used the Windows 7 disc to format the hard drive and booted from CD after restarting.

However when I try to install the new Windows 7 it sits at the part where it says: Expanding files. Then after a while an error pops up that says: Setup was unable to create a new system partition or locate an existing system partition. See the Setup log files for more information

Any help would be greatly appreciated. I have read a lot of posts on this same issue but have yet to find one that applies closely to my situation. I am getting frustrated trying to figure it out lol. Please help!! If I need to supply you with other information to help me figure it out, I can.
 
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My Computer My Computer

OS
Windows 7 64-bit
Thanks Gregrocker. I will give these tips a try in the morning and post my results.
 

My Computer My Computer

OS
Windows 7 64-bit
Ok, here are the steps I took:

1. Did a clean all on the HD
2. Loaded BIOS and clicked Load Defaults and applied.
3. Changed the SATA drive to ACHI and clicked apply

It is still hanging up on the same part and not installing. Any other suggestions?
 

My Computer My Computer

OS
Windows 7 64-bit
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