Comment 32 for bug 259540

I had the same problems that others described. The last thing I tried worked. As I made two changes, you pick the reason:
1. I put wubi.exe in c:\install Ubuntu
2. By accident I left the disk name instead of my choice.

There were lots of errors, but I continued on and rebooted, also with errors. The errors must self- correct, as now it works.
Of course, this method downloaded everything else from the Internet, so the problem could have been fixed there.
Windows 7 still works!