OK I came across a bug in Launchpad-
https://bugs.launchpad.net/ubuntu/+s...ty/+bug/279778
Other links I found-
https://answers.launchpad.net/ubuntu/+question/40967
http://ubuntuforums.org/archive/index.php/t-955727.html
From what I could make out, it seems to be because "the NTFS volume's dirty bit is set and so the resize refuses to take place in case it would corrupt that volume".
The solutions I found to install Ubuntu
1) Boot into Windows, shut down normally(this will normally clear any pagefile/cache epending operations) and then boot the CD
2) Resize the partition within Windows(Right Click 'My Computer'--> Manage--> in the left hand pane, select Disk management--> select the partition and resize it, but don't format the freed space---> Restart and boot into Ubuntu CD--> at the partitioning step, select 'Use largest contiguous space')
Dirty bits are basically bits in the pagefile or cache memory which were changed but not properly committed to the hard disk. Usually happens when Windows shuts down before the changes can be saved to disk. The other common cause is corrupted bits or bad sectors--> as a result of data corruption/improper deletion etc. or simply because the hard drive is damaged.
I suggest you run a disk check in Windows(Right click the drive icon-> Properties--> Tools--> Check disk for errors'). This ought to fix most errors(except for physical damage to the hard drive).
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