Given the fact that you're getting blue screen errors during Windows setup, before you even format the drive, and blue screen errors in Windows when running from your existing hard drive, tells me you have a hardware problem that doesn't have anything to do with the hard drive.
You have bad memory, a bad motherboard, loose cable, bad/insufficient power supply, improper cooling, etc.
I'd start with Memtest86 to check your RAM overnight. If that passes, I'd then run Prime95 overnight. Those two will reveal any problems with your system.
If those two pass then I'd run your manufacturer's hard disk diagnostic utility for good measure.
Somewhere along the way here with these tests you'll reveal the problem.