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[Troubleshooting] Can't install Windows 7 via USB "Setup couldn't create new system partition"

This is my first build and I'm using: PCPartPicker part list / Price breakdown by merchant / Benchmarks

TypeItemPrice
CPUAMD A10-5800K 3.8GHz Quad-Core Processor$99.99 @ Microcenter
MotherboardMSI FM2-A75MA-E35 Micro ATX FM2 Motherboard$59.99 @ Newegg
MemoryPatriot Viper 3 8GB (2 x 4GB) DDR3-1866 Memory$82.74 @ NCIX US
StorageSeagate Barracuda 500GB 3.5" 7200RPM Internal Hard Drive$54.99 @ Amazon
Video CardGigabyte Radeon HD 6670 1GB Video Card$55.97 @ Newegg
CaseSilverstone PS08B (Black) MicroATX Mid Tower Case$34.90 @ Amazon
Total
Prices include shipping, taxes, and discounts when available.$388.58
Generated by PCPartPicker 2013-04-18 17:14 EDT-0400

I have a PSU I salvaged from an old computer.

I have been trying to install Windows 7 Home Premium for the past two days to no avail. I don't have an extra DVD drive nor do I plan on actually buying one to install into the system. I have successfully installed Windows XP via USB but whenever I try to install 7 via USB it says, "Setup couldn't create new system partition."

This is my first build and I'm not really sure where to go from here.

Posted Apr 18, 2013, 9:16 PM UTC

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