I suffered this problem and found the solution below worked, but having to
reinstall Vista several times to get past other problems, I found this
problem may be related to how Vista formats drives:
Up until now, there is typically only one Primary partition on a disk.
(Vista can have three primary partitions on one disk.) All other drives are
Logical or Extended. Logical and Extended drives have an 8MB leader that is
unallocated for use under XP. Vista appears to assign a 2MB leader to Logical
or Extended drives.
If you attempt to install Vista to a machine with multiple drives where the
additional drives are previously formatted under an older (XP) system, then
the 8MB leader can confuse Vista.
If you do not need the information on these other drives, use Vista's format
facility during install to format these other drives prior to installing
Vista. If you need to retain the information, then move the partitions after
installation (by Richard's method) to save the data, convert the drives to
Simple partitions and move the data back to this drive. Then, next time you
need to install Vista, the drives will not cause an installation problem.
(See Richard Urbans method at the first posting.)