Have you tried formatting the drive through the windows utility and then try to install 7 onto it?
Do you have a Windows XP CD? You could also try formatting it with that.
yeah i tried format it like that, and i dont have a windows xp disc for now :(
this hurts = http://i51.tinypic.com/2ewo50z.gif
and i saved it as gif by mistake -_-, the hdd is making my computer look crap lol