SOLVED Setup was unable to create a new partition or locate an existing system partition

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Please help windows 7 geeks!!
I am trying to install windows 7 and facing the error "Setup was unable to create a new partition or locate an existing system partition" and unable to proceed further.
Tried googling many times and applied all the tips that i could manage to understand but all in vain.
My Laptop is Dell Inspiron N5030 &configuration is-
INTEL CORE2DUO PROCESSOR
320GB HDD
3GB RAM

Here is a list of things i've tried till now:

- Used Diskpart in cmd to set thd partition where i want to install win7 as active.
- Used Bootrec in cmd with fixboot and fixmbr commands
- Changed BIOS setting for SATA Controllers in both ATA or AHCI mode
-Unplugged any external devices,USB's etc during installation except the pen drive i'm using to install win7.

Please help any pc geek out here. I'm in real trouble with this. I don't think so even any pc vendor is gonno fix it....awaiting for your ve response guys!!
 

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