You can fix the error easily through diskpart. Just follow these steps
*open diskpart
*delete all the partitions
* use clean command
*now type this -
create partition primary size = 4096
assign letter =D
format fs = ntfs quick label = "Recovery"
create partition primary
assign letter = C
select disk # (# is the no of ur disk most probably it is 0 )
list volume
*select the volume which represents your windows 7 dvd
select volume # (no of ur win 7 os dvd)
assign letter F (or any letter u want)
*exit diskpart...