Insall OS on brand new blank HDD problem

[|Z3R0|]

So I had this piece o' crap 200GB hard drive in which I was keeping everything on. Now it's just not enough space so I got me a shiny new Western Digital SATA3 1TB HDD from Newegg. (http://www.newegg.com/Product/Product.as...6822136533) So I connected it to my mobo blah blah blah - it's plugged in. I start my comp up (without my 200GB drive in) and try to install Windows 7 Ult 64bit via a bootable USB drive. Windows setup loads properly and all, I go to select a place to install it and see a Disk0 with 9350ish Gigs on it. It's not partitioned or anything, but when I try to install it I get a "Setup was unable to create a new system partition or locate an existing system partition. See the setup log files for more information." I can go into advanced options and format and stuff but everything I try to do doesn't work. This problem is driving me crazy and am suppose to be giving away my old HDD to a friend, so I would like to get this fixed fast. (I am using the HDD now so I can diagnose this problem.)
Any help would be greatly appreciated!