How to Fix - Setup Was Unable to Create a New System Partition or Locate an Existing System Partition
When installing Windows, you sometimes can get the following error message: "Setup was unable to create a new system partition or locate an existing system partition. See the Setup log files for more information." In my example, it happened while installing Server 2008 R2, however, this can happen on Server 2012, Windows 7, & Windows 8 also:
To get rid of this error and install the operating system, the solution is simple:
Remove any USB drives, SD cards, or any other additional storage that the operating system is not being installed on, reboot, and try again.
If you have a usb drive connected because it contains drivers for the disk or raid card, do not insert the usb drive until it you are prompted. I've seen this issue many times, and every time it was because there was additional storage connected to the server, causing the installation to halt at this point. Removing the additional storage fixed it every time.