|You can partition, but if you lack the experience, Suatcini has the right path for you.|
I am not sure about Windows 7 Starter, I was under the impression that Windows Starter was only for OEM installations and as far as I know, there is no retail version. If you are trying to install it on a Lenovo machine and the disk is from another brand (HP, ASUS, etc), then that might also be blocking you. Is this a recovery disk? Is it an installation disk? From Whom? What does the disk say on it?
I find that installing Windows 7 Home installs well on a 120GB partition with a number of programs and the rest of a 500GB drive reserved for personal files. I still have 70GB free on C drive.
I have used the install disk generally (Custom>Partition/Format) to make the first partition for the OS installation, leaving the rest of the drive unallocated until Windows is installed, then I use Disk Manager to partition and format the rest of it. The one time I partitioned more than one partition and formatted it with the install disk, Windows 7 was accidentally installed on the wrong partition (the larger one). I had to shrink that partition and create a third, separating OS, programs, and files with the OS on the physical middle partition.
You have to be a little bit crazy to keep you from going insane.