Windows 7 Couldn't find Boot disk error in Installing Windows 7 using USB

[ksr04]

I am getting problem while installing windows 7 on my single partition hard disk. I am using bootable USB drive for the installation. The error I get is "Setup was unable to create new system partition or locate an existing system partition. See the setup log files for more information". When I opened the setup log file(setuperr.log), it shows the error "Couldn't find boot disk on the BIOS based computer". Have anyone got this error before. Please help!!

More Info:
Boot Sequence:
USB
Harddisk

System: Dell Inspiron 1545

 

[kemical]

Apologies for not recieving an answer or reply although I notice that you have solved the issue via a different forum.