download a disk management utility like gparted http://gparted.sourceforge.net/
completely delete all partitions. Do not format hdd after deletion. Do not create any partition. Make sure your hardware is ok.
and then try this solution. trust me i have done this so many times now and it works perfectly.
after the image burn is complete, your hdd should show one 512mb partition. You should see another extended partition with the left over space.
the GHO image is highly compressed so as to save upload and download time but i dont think that it should change anything because i burned the ghost image to another cd and then burned it onto my hdd and the system booted just fine.