Try to format it with Eseaus partition master , but I think you will have to do this from another pc , or may be it will work with a virtual windows disk. All soo try /hard ereaser/ from hirens boot cd. You can all soo try hdd regenerator from hirens boot cd 10.5 to verify the hard for bad sectors.
I had a similar problem today , so I try the virtual xp and I saw that no partitions were found, so I shuted down the pc. Open it and I take out the sata cabel from hard and motherboard reinsert it , all soo I take out the power cabel and reinsert it, and I just inserted the windows 7 disc and format the partition with it and know I'm all most finish setup windows.