Hi ! probably I have the solution 
I work in my free time repairing computers. You should try to obtain Hiren boot CD and be able to use it. Is very intuitive. When you boot it go in the hard drives section and select the application of your HDD manufacturer. I did it for install windows 7. I had to "clean" MBR(Master Boot Record) located on sector 0 in the HDD. It have the route for start your O.S. and probably it is wrote. You may clean it and do a FULL FORMAT for assure success.
Then you can boot by BIOS any CD and WINDOWS CD will format properly your HDD.
Write here with your results if this don't works we might start to think that is a problem of the HDD
I expect you can solve this
Kaigen
I work in my free time repairing computers. You should try to obtain Hiren boot CD and be able to use it. Is very intuitive. When you boot it go in the hard drives section and select the application of your HDD manufacturer. I did it for install windows 7. I had to "clean" MBR(Master Boot Record) located on sector 0 in the HDD. It have the route for start your O.S. and probably it is wrote. You may clean it and do a FULL FORMAT for assure success.Then you can boot by BIOS any CD and WINDOWS CD will format properly your HDD.
Write here with your results
if this don't works we might start to think that is a problem of the HDDI expect you can solve this
Kaigen