Installing 12.04 "No root file system detected error"

Hi all,

I have dusted off recently my old Acer Aspire One (KAV60) and decided to give a go to UBUNTU 12.04

Because my netbook run WinXP and I don't have external CD-drive at the moment I've decided to install Ubuntu 12.04 along with WinXp using WUBI installer.

I got drive split in to 2 partitions and Win is installed on first partition so I've installed Ubuntu on 2nd just to avoid any possible issues.

Installation went OK but after rebooting my pc and choosing to boot in to Ubuntu it came up with these:

Gave up waiting for root device. Common problems
- Boot args (cat/proc/cmdline)
-check rootdelay= (did the system wait long enough?)
-check root= (did the system wait for the right device?)
-Missing modules (cat/proc/modules, ls/dev)
ALERT! /dev/disk/by-uuid/A6904D8C904D6441 does not exist. Dropping to a shell!

I've read few forums and was trying to find solution to it but with no luck.

So next step was running Ubuntu from live USB.

Netbook runs perfect (way better than on Win XP) so after few days of testing decided to install it.

But now I'm stuck again.

When going through installation process and get to page with installation type, I can't see any partitions, no drives, cannot create, add, change anything and after clicking on install now get this error:

No root file system is defined. Please correct this from partitioning menu.

When I boot in to Ubuntu from USB live and run Gpartition only drive I can see is the USB stick.

Just to confirm that I've done hard drive check and no errors were found. Windows XP is working OK.

Any help how to install?

Is there a way to wipe drive using USB live and than format it so it's ready for Ubuntu installation?

Thank you