Released in June of 2009, the 1005HA is identified by its "Seashell" design, and is available in many different varieties in regards to operating system, internal storage, and battery size.
So you deleted your hidden recovery partition? Then you cannot use the recovery option in the BIOS anymore.
"C:" is not a physical drive, it is the name ("drive letter") of a file system of a partition on a drive. A proper operating system installer should first give you the option on which physical drive to install. Then you may even create a partition of your preferred size. This will get formatted and named "C" as default. Then the installation starts.
I don't know what's on your USB key, but maybe you need to prepare it newly from a proper CD image. You may also connect a disc drive via USB and install from a disc directly.