Install of new hard drive

I currently have a seagate barracuda with windows xp home installed, which has been acting awfully flakey when executing programs and such but has zero problems storing media, so i bought a western digital caviar black 640 sata hard drive in hopes to install a copy of the windows 7 via iso, but ive installed the new caviar into my sata 1 slot and my old barracuda in slot 0 and boot windows regularly as usual but cannot format my new drive for some reason, i tried to format it so i could install it but it says half way through format that it cannot complete, any ideas,? im sure im just a retard and have no clue how to load the drivers for the new drive, so instructions to do so would be great.

ahh tricky part is i have no disc to burn it on, and i am hoping to somehow virtually mount the windows 7 iso then install to the new drive as the directory but perhaprs im just a bit retarded today haha, i really have no idea if that would work, i mean i tried earlier to just use my new drive and install xp from disc then later upgrade once in windows xp but couldnt get it to cooperate, when prompted to press enter to begin install it was completley uncooperative, no response, and i made sure to enable usb keyboard in bios.

well the thing is im very much capable i just do not have a blank disc to burn the iso to, and i need this computer operable tomorrow preferably with my new drive as my main drive and my old seagate as a back up/ storage drive, and the mission is to get windows 7 operating on it whether i have to stay up all night tonight to do so haha, i mean i tried going the route that made most sense to me which was, unplug my old seagate, plug my new caviar to the main sata port and try and install windows xp via disc which i have that i purchased from a circuit city awhile ago, but i couldnt do so because it wasnt responding for some reason, then later upgrade to 7

well its a brand new cable, just tried numerous ports, disable auto clock calibration which reverted my phenom x3 to three cores, and am now trying again, but it seems to be doing the same thing, i am in the process of formatting which is taking a rediculously long time, and it is saying that my drive size is 814 gb and it is a 640 gb drive which is another thing that utterly puzzles me and the my computer window is completely unresponsive in the background.