The problem is that the disk's MBR (master boot record, a list of partitions on the disc) will only support up to 4 partitions.
It looks like xubuntu wants to use 3 partitions, and win7 uses 2, so that's too many - you could look to see if the installer has an option like "don't use separate home/root partitions", this seems like the easiest solution to me.
You can also see if you can install xubuntu using LVM, which I know is pretty straightforward with Ubuntu, probably xubuntu as well. This basically makes one of your 4 partitions a "directory" for storing other partitions, so you can have more total.
Another strategy is to try to change your partitioning scheme to GPT, but I am not sure if windows 7 would work with that.
By the way, mounting/unmounting is not the same operation as writing or deleting partitions.