"Setup was unable create a new system partition" error installing Win7

I agree here with Slartibartfast. A corrupt install media can also be a proabble cause. As far as AHCI drivers are concerned, Windows 7 has Microsoft AHCI drivers. You can also check your motherboard support page to check if they provide customized AHCI drivers for your motherboard. AHCI is always the recommended mode for the SSD.

Also, if you can attach the SSD as an additional storage and see if the operating system allows you to create partitions on the same. Atleast this will help us rectify if the windows installer is creating a problem or the SSD.

EDIT: It is best to give linux a shot. It is worth :wink:

Download a free copy of fedora and try installing the same with minimum packages to see if you are able to do so.

Seriously, frustrating it can be.