Please try the following steps:
Boot off of the Windows installation CD, choose your language and then press Shift+F10. This should load the Command Prompt in the Recovery Environment.
In the RE (recovery environment) choose command prompt and type following commands pressing Enter after each bold command
1) C: 2) diskpart
3) list disk
it will show the list of your drives, with the information:
- total space
- free space
status would probably be "invalid" and free space would be "0 bytes"
you have to select the drive next with
4) select disk <disk number>
disk number = as listed in previous command, normally disk 05) clean (this erases all data on the Disk, so be sure you choose the correct one)
now for verification of disk status and free space type
v) list disk
the status should be "online" and free space should be "disk size"
Now try the installation once again.