Cannot install OS X Lion after new seagate hybrid HDD install

I just installed new seagate hybrid hdd (STBD1000400) in my early 2011 13" Mac Book Pro after stock drive failed;
formatted it as mac os extended (journaled);
downloaded lion installer and copied it to external with OS X Lion bootable drive;
started computer from external drive;
ran lion installer;
"Install Failed: OS X could not be installed on your computer. OS X can't be installed on the disk (null) because a recovery system can't be created. Visit www.apple.com/support/no-recovery to learn more"
I reduced partition size and same error. Any suggestions

Remove the SSd from inside the case and connect it to that same Mac with a SATA to USB adapter, one that has its own AC power supply (Not a USB BUS power adapter), and try to install Lion on it.
I am suspecting the cable that goes from the drive to the logic board is faulty which is very common.
If the drive works fine outside the system, IE you can install Lion on it and it creates the Recovery HD partition and you can boot and run the system from it then is is more than likely the cable.
One other thing to do is after you Repartition the drive in disk utility grab the bottom right hand corner of the partition layout area and drag it up a little shrinking that partition by a couple of 100MBs to 1-2GBs and try the install again.
There was a bug in some Macs that for some reason with the whole drive included in the primary partition the OS X installer couldn't create a Recovery HD. You don't have to create a second partition, you can just leave it as Free Unpartitioned space. If you can then successfully install Lion you can then Drag the corner back down to put the free unpartitioned space back into the main partition.

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