Fedora Installation problem. Not able to free up space in installation wizard

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I guess you meant Fedora 26, not 16. Here are final 26's ISOs that soon will be officially released (in case you were using beta images) https://kojipkgs.fedoraproject.org/co...

As for wiping Windows, if you don't need any data from your drive, the easiest and best way should be by formatting entire hard drive, you can do it using any of the tools you mentioned. You'll only have to choose partitioning scheme https://ask.fedoraproject.org/en/ques...

I think you didn't actually get to the step where you could remove current partitions. The first time I used Anaconda (the installation GUI), being used to GParted, I also found it cumbersome. You only got to the step of choosing destination drive. After clicking "Done" on this screen you'll get to partitioning tool of your choice (Automatic, Custom or Advanced Custom) where you'll be able to repartition disks.

You should not install Fedora 16 anymore unless you have very good reasons for that. Fedora 16 is End-of-Life since spring 2013 and not supported with updates anymore.

Please install one of the currently supported Fedora releases.

Usually in the installer, all non-Fedora partitions are listed under Others, just expand the view there and delete the partitions you don't need any longer.