Windows 7: No HDD has been identified in your system.

Im going to re-run the disk check and post exactly what it says, because it looked like it worked so i went with it,

If you can boot the Windows 7 installer now then you can also run Disk Check Option Two from System Recovery Options Command Line.

You may need to format a whole disk partition to run the disk Check first. To give it a letter you may need to use Hiren's bootable XP Disk Mgmt. Same steps as these: Partition or Volume - Create New

In that case it's probably easier to use XP to Disk Check the same as Option One.

Enter a Drive Letter Only ( Example. C ): c
The type of the file system is FAT32.
Volume DRV2_VOL1 created 2012-06-26 13:19
Volume Serial Number is 0000-1098
windows is verifying files and folders...
File and folder verification is complete.
Windows has checked the file system and found no problems.
134,182,208 KB total disk space.
134,182,176 KB are available.

32,768 bytes in each allocation unit.
4,193,194 total allocation units on disk
4,193,193 allocation units available on disk.

Then it ask to check other disk.. And my HDD is healthy apparently. AND my HDD is 320 GB.. Why does it sat 134gb?

C must not span the entire HD. Extend it in XP DIsk Mgmt then run a full disk Disk Check. Partition or Volume - Extend

Have you tried to boot and run the Windows 7 installer? During install use Custom>Drive Options to Delete all partitions and create New, or just click Next during install to let the installer create/format your install partition and begin.

Its a FAT32 partition, i heard those cant be expanded or something.. But either way the expand partition option isnt anywhere on here. (MiniXP)

You want an NTFS Primary partition. Delete the current one and create a new full disk NTFS Primary partition, full format and give it a drive letter. Then run Disk Check.

I got this error, "The operation did not complete because the partition or volume in not enabled. To enable the partition or volume, restart the computer" I restarted the computer and went back and made the partition active but its not FAT32 or NTFS, it says nothing at all.

Boot the Windows 7 DVD, at first screen press Shift + F10, in Command Box type:

Diskpart
List Disk
Sel Disk # (use correct disk # for your HD)
Clean
Create Partition Primary
format fs=ntfs label="Windows 7"
assign letter=C
exit
chkdsk C: /F /R
exit

Watch progress to see if errors are found/fixed.

After disk is checked, return to Install now, follow steps to Clean Install Windows 7 choosing the partition created.

Is it same steps if i use a USB?

yes

Another way to access Command line is installer's System Recovery Options