Installer crashes while creating partitions

My system's Windows installation seemed to stop working, and after a day and a half of reinstalling that to try and overcome the issue I just gave up and am trying Ubuntu instead.

The problem I'm having is that after I choose my account details and it begins the actual installaton part, the installer crashes during "Creating ext4 file system for / in partition #1 of SCSI1 (0,0,0) (sdb)...". I can't remember the exact error message, and I'm trying to replicate the situation so that I can see it again. It's just hanging on the above mentioned part at the moment, has been for the last half an hour.

I fear the problem may be a faulty HDD, as I have run Disk Utility and its' Lubuntu equivalent, which both tell me there are some bad sectors. However there is a green circle next to that statement, which I take to mean that it is still in working order (Lubuntu gives me an exact number, 17, which doesn't seem like a lot for a 1TB disk).

I do vaguely remember something about the error message telling me to go and set my own partitions rather than use the default configuration. So after posting I'll be trying that, as I think Ubuntu might be having trouble avoiding the bad sectors.

Assuming that doesn't work, does anyone have other potential fixes for me before I shell out for a new drive? It would also mean voiding my warranty but with exams and assignments coming up I don't really have time to wait for a manufacturer repair.

Thanks in advance for anyone who can help, I'll be back in under an hour whether my fix works or not.