I recently tried testing Server 2012 for installation and I had a major issue. Windows 8 also uses the same method for installation so this should also apply to Windows 8. I thought this might be helpful for other people who have the same problem. My setup is a 1U server with no DVD drive, no hard drives, and only USB. I have a new hard drive that I wanted to install Server onto, so I put it in and ran the installer off a thumb drive. I kept receiving the following error when I tried to format the hard drive and proceed with the installation:
"We couldn't create a new partition or locate an existing one. For more information, see the Setup log files."
After hours of troubleshooting, I determined my problem was I was using a thumb drive to install it, and Windows didn't like it. Some people had similar issues when similar devices were plugged in (i.e. external hard drives, SD cards, CF cards, etc). In my case, it was the installation drive itself was a thumb drive. I ended up digging up an external DVD drive and placed the installation onto a DVD. Worked flawlessly. Now I am up and running.
I tried the steps here to no avail.
Hope this helps anyone else with the same problems.