Cannot upgrade to OSx Lion no Recovery

I purchased and tried to install the OSx Lion upgrade. My mac is running Mac OSx 10.6.8 and I have bootcamp with Windows 7
It seems that there is some sort of problem in upgrading the OS when bootcamp is installed, but I am not sure of which would be the solution. The error says :
Mac OS X can't be installed on the disk Macintosh HD, because a recovery system can't be created. Visit www.apple.com/support/no-recovery to learn more.
From an internet search I think that a possible solution would be to have an external hard drive and install OSx lion on it. However, the hard drive must be formatted and have at least 13 G free, so that I will have to purchase a new hard drive only for this task :-( . Before doing so, I'd ask to the community if anyone had experience with this issue and what is the solution. Any help will be greatly appreciate ^_^ Thanks!!!
As a side note I'd like to express my deep disappointment in my Mac, fueled by the frustration of being unable to do a simple task, such as upgrading the OS. This is really the last drop. I can honestly say that buying my macbook pro was a very big mistake :-(
Since I bought it, almost one year ago, I had only problems. The OS is slow and crashes very often. I lost countless hour of work due to crashes, and disk failures. Most of the software is either not compatible, or full of bugs, while I had to pay lots of money for any kind of upgrade/assistance. The upgrade to Osx lion is my latest desperate attempt to stabilize the OS. I can't honestly say that there is a single task which this mac can accomplish, beside browsing e-mails.

Thanks a lot for the reply. I will be happy to give more infos about my problem
For the triple boot: I am installing rEFIt. I dod not think that the problems with OSx Lion are related to this, as I took the decision to install Linux after failing to update the OSx
I would be glad if we can bring the topic back to ways to upgrade to OSx Lion while having bootcamp. Did anyone ever succeded in doing so? ^_^
About the unstable OS:
I have about 3-4 fatal crashes per week. Sometimes the mac is unresponsive and I have to restart it manually, sometimes the screen goes black and the computer restarts itself.
From what I have noticed I'd say this happens either while I am using some application, or just by using an external hard driver.
About the application: I'd say I can divide the crashes based on percentage of occurrance as follows:
60% with Microsoft Power Point (I can't say if it's because of the program or just because I use it at least 70% of the time) 30% Programming( C++, Fortran or Matlab) 10% Latex (using TeX Shop). The crash is immediate and I am not saving or doing anything in particular. Just typing text.
About the external hard drivers: I had some serious crashes due just by plugging in removable hard drivers, or reading/writing on them. This accounts for about 50% of overall crashes. It is not the same hard drive: I had crashes with multiple sources and I think it's some serious issue with the OS. I take extra care in safely removing and ejecting before unplugging from any source. Probably an important comment: most of the flash drivers I have used are also used with Linux systems. I never had a problem in Linux or Windows.
Thanks!!!!!

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==============
Your post states you are using Lion.
Your system profile confirms you are using Snow Leopard (OS 10.6.8)
You posted in the Mountain Lion forums (OS 10.8.)

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After potentially giving up and accepting that I had wasted A$31, I tried again 2 months later.
Before I did, I read many forums indicating that Lion could not be BOOTCAMPED with Windows XP. I also found forums saying it could, but only from an older Mac such as mine shipped with Snow Leopard. If you have a newly shipped Mac with Lion pre-installed it appears you must use Windows 7.
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You now have 3 partitions: Mac HD, new partition, Original BOOTCAMP.
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After installation I found that the new partition was also labelled BOOTCAMP. The BOOTCAMP I wanted to use was the 3rdpartition, the original BOOTCAMP.
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I also referred to Parallels - http://kb.parallels.com/en/111629. I removed Hard Disk 1 and replaced with HardDisk 1 that seems to direct it to the newly installed Lion. I could not link it with BOOTCAMP as stated in the article.
Once all this was done, it still wouldn’t boot my Windows and I was ready to give up. I left it for a couple of hours to decide whether to reinstall Snow Leopard, then tried one more time with SUCCESS! I think what was happening is that Lion was still busy indexing and that everything took time to catch up. This is my only explanation.
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