Not enough free space on the drive to create a partition?

Check the disc you are using for the install... Is it a "known good" one
that works on other computers? How about the CD/ dvd drive, is it reliable?
Is the hard drive failing (run scandisk)?

Can you boot to the live CD? If so use gparted to view and edit the
partitions (may have to install from the repositories as I'm not sure it is
on the disc). That should tell the tail.

Fixed it. The old open the case, unplug the hard drive and threaten to
drop it into a bucket of water, then plug it back in and reboot worked.

Glad you fixed it. Just proves the old network administrators rule: if it
isn't working always suspect the cabling first.

All the same, if the hard drive is really old, say 5 years or more, check
for bad sectors and consider replacing it soon if there are any. Even if it
tests good the reliable life of a drive isn't usually much more than 5
years. However if there is nothing "mission critical" on it then enjoy! It
could last 10 years...