WD500 AALS (Black) -- OS install issue

I'm trying to install Vista OS on my new (second) hardrive to dual boot with XP on my other hardrive. After booting up with the Vista installation CD, following all instructions, selecting "Custom" install, and selecting the new disk for the location of the install, I get the following error message: "Windows cannot be installed to this hard disk space. The partition contains one or more dynamic volumes that are not supported for installation". I get the same message whether the new disk ("E" drive) is formatted NTFS or is not partitioned (unallocated space). How do I solve this problem?

when you booted, did you set the primary boot device to CD-ROm or did you do the F-12 thing where you can select the boot device.

I've noticed that sometimes if you don't set the boot device to cd-rom, the setup kind of freaks out

I selected the CD-ROM as the "first boot device" in my BIOS setup. I think that's what you mean. However, there is another option in my BIOS for "Hard Disk Boot Priority" which I did not change.