Hard drive not recognized during install of OS

Hello,
I dropped my Dell Inspiron laptop on the floor. Diagnostics indicated several sectors on the hard drive unreadable. Bought new Western Disital WD3200BPVT drive. Formatted it using SATA to USB adapter with AC power connected. BIOS recognizes drive, however, the operating system can not see it during installation. I can not load Intel Matrix Storage driver from the manufacturer off my flash drive stick as I don't have boot disk to make system see my USB drive. Any suggestions.
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More about hard drive recognized install
  1. Windows, save Windows 8, does not allow you to install onto a USB device. You will need to install the drive in the laptop, replacing the damaged drive, then reinstall the OS.
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