Ran into this error when installing Win 8.1u1 on a new low-end laptop via USB key…
The complete error was:
We couldn’t create a new partition or locate an existing one. For more information, see the Setup log files
This article – http://blogs.technet.com/b/asiasupp/archive/2012/03/06/error-quot-we-couldn-t-create-a-new-partition-or-locate-an-existing-one-for-more-information-see-the-setup-log-files-quot-when-you-try-to-install-windows-8-cp.aspx
suggests simply using diskpart – but that didn’t work for me.
I was about to use a DVD for the install….(which would have meant trying to find a DVD…. for which I would need a tardis in order to go to when DVD’s were actually used) – when I simply unplugged the usb key, refresh, error…., plug the usb key back in, refresh – all good.
Now that’s some absolute whackiness…..