I located this fix in winforums and was able to reformat the hd after this. Turned out to be a bootcfg issue but I could not use the bootcfg /rebuild option. I ran the debug commands after booting to the utility/diagnostics CD.
debug (hit enter, you will only see a dash as a prompt, everything else goes caps, bolded text is what you need to type, remember to hit enter at the end of each line)
-F 200 L1000 0
xxxx:0100 MOV AX,301
xxxx:0103 MOV BX,200
xxxx:0106 MOV CX,1
xxxx:0109 MOV DX,80
Type 80 for the Main hard drive - HD 0, or type 81 for the Second hard drive - HD 1.
xxxx:010C INT 13
xxxx:010E INT 20
xxxx:0110 (Leave this line blank and press the <Enter> key)
After this just restart the machine and start the install process