Thank you for taking the time to report this bug.
Could you please attach /var/log/syslog and /var/log/partman to this bug?
So you can attach the files, you cat boot the Live-CD with the option "try
without install", and then initiate the installation from a terminal with the
command:
$ ubiquity
** Changed in: ubiquity (Ubuntu)
Sourcepackagename: None => ubiquity
Status: New => Incomplete
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Installer suggests too small partition, unable to go back and continue
installation
https://bugs.launchpad.net/bugs/209724
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