Hi there, Welcome to SF
Couple of points, firstly i dont think theres anything wrong, i believe the only problem is that your machine is not booting from the disc its trying to boot the HDD which was initially blank and then from another machine hence the blue screen.
All you need to do is get the HDD in the target machine and get it to boot from disk by hitting F2 on startup and selecting it, then you should be good for claen install formatting drive on the way
Clean Install Windows 7 guidelines here