I was having a similar problem when Installing Windows 7 Starter Edition from some Acer Recovery Discs. I was running Ubuntu Maverick Meerkat and every time I wanted to install from the Discs I would get the same 1005 error.
What I did was use a Windows Installation disc to delete the partitions. Then quit the setup and put the Recovery Discs In. I was then able to reinstall the original OS.
If you don't have a Windows Discs, search for Ultimate Boot CD. There are some tools on that which will allow you to delete the partition. If you have data on the drive try a Ubuntu Live CD and use an External drive to copy the data off of the disc before deleting the partition.
I hope this is of some help.