Installing Windows 7 Ultimate

I am trying to do a clean install install with windows 7 Ulitmate.
I format a WD 500Gb hard drive as one partition, when windows try to install windows it came back with and error saying it cannot install windows because there is more than one dynamic drives.

I used an XP system that I have to format the new disk as NTFS, but I still get this error
Could one please tell me what I am doing wrong. Help? Help? Help?.
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  1. use the win 7 to format before install
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