It's actually very simple to do
Solution: Setup was unable to create a new system partition or locate an existing system partition
If you’ve lost your Windows 7 installation disc, which could be the actual discs that came with your PC or a Windows 7 installation disc that you purchased separately, then reinstalling Windows can be a bit frustrating. However, there is a very simple way to create your own Windows 7 installation disc for Home Premium, Professional, or Ultimate in either 32- or 64-bit versions from scratch.
The Windows 7 Product Key is essential for reinstalling and activating Windows. If you purchased your PC from a manufacturer, the product key may be on a label attached to the computer case. It may also be on documentation that came with your PC.
If you purchased a physical copy of Windows 7, the product key may be printed on the box or included in the documentation.