I'm under the impression it is. I did my first post on my new build about 30 mins ago. Messed around a little with the BIOS, which showed a 500GB HDD and went to go install Windows 7. W7 is now telling me I can't install W7 because I have no HDD.
I'm wondering if this has something to do with my BIOS or if in fact my HDD was DOA. I restored everything on the BIOS to default and still this problem persists.
I'm using an AM3 Gigabyte board. It defaults to IDE so I went to switch to RAID. I couldn't get anything going from the DVD drive with RAID selected so I went back to IDE. I'm using a single Seagate 7200.12 500GB SATA.
Right now I'm letting W7 try to repair whatever is wrong but I'm doubtful.
Try to disable RAID option and enable AHCI/SATA. It's possible that your Windows installation does not have RAID controller's drives and can't find your hard drive for this reason.
As another option, you can download drivers for Win 7 for your RAID controller and use it during installation.
There is no way it can do the hardware damage when you cancel the repair process. You are only risking loosing your data, but you don't have anything anyway (it seems like this is a clean installation).
Reset BIOS settings to default. Reboot. Check if your drive is found. If not, check the cables. If cables are good, then try your drive on another SATA port (or another machine if possible).
If it's still dead, it's dead.