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Windows Server 2008 x64 Trial Install

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Problem: Error code: 0x80070070. 

Situation: I have three drives. C:, D:, and E:. Drive C is my current OS, Win7 Pro x64. Drive D is my main storage drive for videos, music, etc... Drive E is a terabyte drive that is partitioned in half. I am trying to install Server 2008 onto partition 2 of the drive but at about 3% of the install, I get the above error code. 

I have already tried deleting both partitions on drive D, even deleting the System Reserved partition. I created a bran new partition on Drive D and tried to install again but I received the same error.

For the media, I am using a 4GB flash drive. I used the Microsoft Windows 7 USB/DVD download tool, found here: http://www.microsoftstore.com/store/msusa/html/pbPage.Help_Win7_usbdvd_dwnTool. Is my media formatting wrong? I have completely formatted the USB in diskpart by cleaning it and deleting any partitions on it and creating a new one.

Any help I can get with this issue would be great, thanks!


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