I didn't want to disable Intel(R) Smart response Technology as it does offer performance improvement. Changing the BIOS to get rid of the raid setup would have done just this.
The bulk of my resolution came from this Super User answer here:
How do I install Windows 7 (with Intel RST) and Linux to dual boot on a Dell XPS 15?
Mine differed in a few ways though - mainly I used the Windows 7 bootloader and not the Linux grub one. Here are the steps I did.
I created some free space partitions using windows partition tool before booting into the Ubuntu live DVD.
Control Panel -> Type partition in the search -- open windows partition tool..
I created 100GB and 4GB. Then used the windows tool to keep the new partitions as unallocated. I then used Acronis disk manager partition tool to convert it to EXT3 and Linux swap (other free alternatives exists). I had to use the windows tool to make the space free first as the Aconis tool seemed to crash when I try to resize the C drive directly.
Next I disabled Intel smart response from the Windows task bar
right click -- options -- disable. (see screenshot below)
You can enable it again after you have installed Linux.
I then re-booted my laptop and loaded Linux from the Live DVD disk.
When Linux booted up I typed in the terminal
ls -la /dev/mapper/
The above commands made the drives visible. After the commands I clicked the "install Linux". Then on the 'choose partition' sections I selected the one EXT3 one I created and set that as my Linux root. Then the 4GB and set that as the swap. I then installed Linux.
Upon restart it didn't boot straight into Linux - this is because I did not overwrite the Windows bootloader. Everything was installed only on the partitions I created. I was worried about messing it up and not being able to get into Windows.
To enable my laptop to load into Linux on this new setup - I booted it into Windows (it didn't give any other options at this point). Then in Windows I downloaded and installed EasyBCD. This is quite a handy tool as it allows you to add add additions to the Windows bootloader - you just select the partition. When I load my laptop now it allows me to load Linux or Windows 7 from the bootloader. After this was working I then re-enabled Intel smart response.