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Setup Cannot Locate a Valid Hard Drive to Store Temporary Installation Files
http://www.vistaarticles.com/articles/270/1/Setup-Cannot-Locate-a-Valid-Hard-Drive-to-Store-Temporary-Installation-Files
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Published on 12/10/2006
 
This problem occurs if you install Windows Vista to a new formatted partition that does not have a drive letter assigned to it.

Setup Cannot Locate a Valid Hard Drive to Store Temporary Installation Files
To resolve this problem, make sure that all the hard disk drives on your computer either have unallocated disk space or contain partitions that have drive letters assigned to them.