if you can't boot into win 7 disk and format something is wrong, never seen a drive yet that couldn't be wiped with the windows disk.(formatted 2 drives in my PC 2 days ago one was SSD all worked fine).I'd try the xp disk and if that did not work then try formatting it on another PC if possible.
bios was seeing all drives, is just that I made a USB Win7 boot drive and it could not format both drives, or either of them. Used a bood XP cd, changed port mode to regular IDE, deleted partition, formatted, regular not quick, changed port on mobo to AHCI and used the USB drive to install win 7 fine. my sig rig was down 2 days.
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