Diskpart sees neither HD?
Is your mobo 64 bit capable? Are you booting the Windows 7 installer?
If XP is still working please post back a screenshot of your maximized Disk Mgmt drive map with listings:
Screenshot with Paint
If no XP Try booting free
Partition Wizard bootable CD, post back a camera snap or drive listings. Wipe the HD then create a Primary partition, mark it Active, boot Windows 7 installer to try install.
If you have an older IDE controller it may need to have its
driver loaded into installer to recognize HD's.