problem creating ext3 filesystem on your hard drive
Well, I know what it means, but am not sure what's causing it.
Ubuntu is trying to format your hard drive to install. The format it is using is ext3, which is a type of Linux filesystem (other choices might be ext2 or ReiserFS, but ext3 is probably the best choice in general). Windows has different filesystems, such as NTFS or FAT-32 or FAT-16.
The disk that Ubuntu was using is your first hard disk, as we can see from "(0,0,0) (sda)". If you are using only one disk drive, that's all you have. If you had a second disk, it might be (0,0,1) or (0,1,0) or (1,0,0) depending on how it is physically connected to your computer.
It might help to know details about your hard drive. Is your 1TB drive connected by SATA? Was Ubuntu successful in partitioning the drive? (It says it was going to install it on "Partition #1 of (0,0,0)".)