Finally got it to work.
First I did what it says on this page. That got me past the "this disc cannot be used..." thing.
From there I was getting a new error (hey, that's progress, right?) that said: "An error occurred while preparing the installation. Try running this application again." Running the application again yeilded the same error repeatedly.
There was an installation folder that had been created on my harddrive. I trashed that, tried again and it worked.
Best of luck.
I have this same issue. I have 119 GB available on my hard drive and yet it says that "this disc cannot be used to start up your computer". Weird, considering this disc IS being used to start up my computer with OS X 10.6.8.
I cannot go into disc utility and change the partition because my disc is not currently partitioned and therefore, I don't have that tab as an option to select.
Any ideas on how to fix this issue so I can upgrade my operating system?
Hey I'm having a similar issue. Trying to install Mavericks on an Early 2011 Macbook Pro, currently using version 10.7.5.
I tried the Disk Utility fix to no avail (repartioning the drive to make it smaller), I also checked and made sure that the partition scheme is GUID Partition Table.
Is there anything else that could be causing this problem? Perhaps an interaction from Time Machine or from Bootcamp?