How are you installing this? From an older Windows or from the boot disk?
When exactly did this error come up? When you tried to format the drive? Or later? During the first boot?
First thing I recoment during setup errors like this, when it comes to a file error, is to run a disk scan on the drive to check for errors. Could be an option in the BIOS to do that, or a downloadable disk from either the PC vendor or the drive vendor.