Windows 7 Windows is unable to install to the selected location. Error: 0x80300024

@klado
I looked on google and most this comes from more than 1 drive connected on some PC's. Shutting down a format before finish may not be so good for that drive if I understand you correctly.

Disconnect any other drives so you only have 1 which be the new 250. Win 7 dvd can wipe all partitions regardless including linux. When you get to screen below select drive options and delete all partitions and they will combine back to full. Then do the partitioning with that.

After you install ok then shutdown and reconnect second drive

If that don't work when it stalls do this
press Shift+F10 which brings up a command shell type Diskpart
type list disk
My system displayed two disks; disk 0 and disk 1
select disk=0
Clean -- be careful as this wipes the disk clean of all data, volumes & partitions
select disk=1
Clean -- be careful as this wipes the disk clean of all data, volumes & partitions
 

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I agree with Veegertx, definitely disconnect Drive 1 and leave Drive 0 attached and do your install.

Windows 7 get a little finicky about the extra drive sometimes.

Follow his advice and your install should be okay then.