W7x86 USB Reinstall; "Setup was unable to create a new system partition" issue

Solution 1:

Clean the disk, removing all partitions, then try restarting the install

Solution 2:

(As posted by m98ranger)

Make sure that if you have a memory card in it's slot take that sucker out, or it will give you this error. Basically, I took the card out, restarted setup, hit Format > OKay > Next and now W7x32 is installed.

Solution 3:

I have found one tricky solution which not require any disk manipulation. Step-by-step instruction can be found here

• When you see the error – remove the flash drive from the computer
• Press exit (red cross in the top right corner)
• Start installation from the beginning (without reboot)
• After selecting Windows 7 edition you will get new error
• Press OK in error window, you will be redirected to installation main menu
• Insert your USB Flash drive in to the computer
• Install windows