If someone finds this thread from a Google search, here is the fix....
Boot from the Win7 disk
At the "Install Windows" screen press SHIFT F10 to get a command window
Type "regedit" (without the "") and press Enter
Click to Select HKEY_LOCAL_MACHINE
Click File, Load Hive
Click the drop down arrow in "Look in"
Browse to C:\Windows\System32\config (there will be a C: drive as the WinPE is assigning drive letters)
Select SYSTEM and click Open
In Key Name type "letter"
OK
Click the + next to HKEY_LOCAL_MACHINE in the left pane
Click the + next to "letter" in the left pane
Select MountedDevices in the "letter" group
Select all values in the right hand pane and press Delete on the keyboard
Yes
Select "letter" in the left hand pane
Click File, Unload Hive
Yes
Close Registry Editor and the Command Window
Close the "Install Windows" screen
Yes
Remove the Win7 disk and reboot into Win7 which will assign drive letters.
credit : Brian_K @ community.norton.com
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