back up your data first.
try this in windows 7: click start button > type disk management > click create and format harddisk partitions > disk management window will open, select your drive or right click on it, click format. hopefully that'll format the drive.
disk read error might be a connection or hardware issue. in that case try reconnect the hdd and try to format again or scan it with a s.m.a.r.t. utility or chkdsk or scandisk.