Fdisk does not recognize the volume label

I am not being allowed to format my hard drive when booting from either a repair or original Windows 7 DVD. The app works and I get into DOS. I type the format command (format c:/fs:NTFS) and when asked for the volume label, I type in the correct one (I checked and checked and I am 100% sure; it is 'New') and am given a message that is is not. Is there a way around this or do I need to get some software to perform a low-level format?
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