If you are running System Center 2012 SP1 which is my case and you try to create your Virtual Machine you may have this issue when trying to do the process manually.
Solving the issue…
There are a couple of solution and it all boils down to your existent scenario. If you are using a Hyper-V cluster you just need to enable the option Make this virtual machine highly available and that will tell SCVMM to find a storage location in a CSV.
If you are not using a cluster you need to check on the server properties which drives you have available for placement, in the figure below the C: drive was not selected which means that is not being analyzed as part of the select host process.