Getting error code when installing windows 8.1 that windows cannot format this disk error code 0x8004242d

1. Insert the install DVD (ok )
2. Boot into the setup process (ok )
3. Get to the point where you need to select a partition (Error: "Setup was unable to create a new system partition or locate an existing system partition. See the Setup log files for more information" ) and click Load Driver
4. Insert driver DVD (i have USB )
5. Locate the storage driver, in my case the AMD AHCI Compatible RAID Controller (ok - Intel ICH9R AHCI )
6. Notice the message "Windows cannot be installed on this disk. (Show details)" at the bottom (ok )
7. Insert the install DVD back into the drive (still in the drive )
8. Expand the advanced drive options (ok )
9. Create a New partition consuming some amount of space, in my case all of it (ok )
10. Windows says it had to do some funky stuff, click OK (didn't show )
11. Notice that there is a 200MB system partition and a new primary partition (only one partition )
12. Select the new primary partition and click Next (still error: 0x80300001 )

Partitions made by installer are correct, formated and can be used under Window 8,8.1 x64.