Cannot format HD - WTH???

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Specs:
P4 2.6GHZ CPU, ASUS P4C800 mobo, ATI AIW 9600 video card, WD 120GB HD (new), 300watt power supply, cd-rw

My computer one day wouldn't boot, so I got a brand new HD. There were no error msgs, it just went as far as the Windows XP logo for a split second, then blank. Since I only had Windows XP Home Ed (upgrade), I borrowed an HP Recovery CD from a friend and decided to load it first, then follow it up with my "upgrade" cd right after. The back to back installs were successful and then as soon as I clicked on My Computer, the system froze. I opted to hardboot then an eror msg appeared saying "Error Loading Operating System." After few unsuccessful retrys, I got a Win XP Pro (Full) and retried loading the OS. It all goes fine til when it tries to format the HD and it says that the "HD may be damaged" and it cannot be formatted. I tried both "quick" and the long method. The quick method goes to 20% then says it cannot be formatted and the long method hangs at 97%. I tried every one of these methods with different jumper settings also. Could it be a power issue with the power supply. Please help. Thanks in advance for any and all replies.
 
stop using that damned oem hp disc, it will bring about nothing but trouble. see what happens when you install using a real copy of xp.
 
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