Delete the System Reserved partition [method 3]

Source
windows 7 Ultimate

Method 3: Trick to Remove 100.00 MB System Reserved Partition During Setup

1. On the “Where do you want to install Windows?” partition screen of Windows 7 Setup, click on Drive options (advanced) to delete existing partitions and create a new partition.
2. Click OK when Install Windows wizard prompts with the following message:
   

   To ensure that all Windows features work correctly, Windows might create additional partitions for system files.

   
3. Two partitions should be created, a System Reserved System type partition (Disk 0 Partition 1) with 100.00 MB in size, and originally intended primary type partition (Disk 0 Partition 2) with allocated size now less 100MB.
4. Delete the Primary Partition created.
   
5. Click OK when prompted that “The partition might contain recovery files, system files, or important software from your computer manufacturer. If you delete this partition, any data stored on it will be lost.”
   
6. All disk space inside the partition deleted will now become unallocated space. Now, highlight System Reserved Partition, and click Extend. Assign the available disk space to the partition, and click Apply.
   
7. Click OK when promoted with “Extending a partition is not a reversible action. If you proceed, you will not be able to undo this action later.
   
8. Highlight on the extended System Reserved Partition, and click Format.
9. Click OK when prompted with “The partition might contain recovery files, system files, or important software from your computer manufacturer. If you format this partition, any data stored on it will be lost.”
   
10. After finished formatting, the originally System Reserved Partition will now become normal system partition, ready to install Windows 7. Proceed to install Windows 7 as usual.
    

Note: If you plan to create more than one partitions, all partitions should be created first before deleting one that intended to be used as Windows 7 partition.