Problem: The following issue was reported to me by a colleague. They tried using MDT to deploy Windows to a bunch of blade servers and with one of them they kept getting the following error:
Setup was unable to create a new system partition or locate an existing system partition
Resolution: After opening the chassis and investigating the problem blade they discovered that there was a USB flash drive plugged into a USB slot inside the blade. The purpose of this flash drive was for loading firmware, and after it was removed the deployment succeeded.
Mitch Tulloch is a seven-time recipient of the Microsoft Most Valuable Professional (MVP) award and widely recognized expert on Windows administration, deployment and virtualization. For more tips by Mitch you can follow him on Twitter or friend him on Facebook.