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#21
I'll repeat it again: you need to wipe the HD of boot sector code, not reformat it. There should be a Quick wipe function on Seagate Disk Wizard CD. If not do the quick wipe from the Disk tab of Partition Wizard boot CD which should also boot itself.
This should force the installer to boot itself so you can use Custom>Drive options to partition and format, or just click Next to let the installer do it for you: Clean Install Windows 7