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

That’s what I expected would work - I’ve never needed to use diskpart before when installing Win7. But no matter what I try, it gives me the same error, even when letting the installer run onto an unallocated partition.

If I try the New Partition option from the installer, it only creates one partition - an 111.8Gb Primary partition. No second 100Gb reserved one.