Disk read error/ Installer and recovery hanging

Just making sure. Your HD tests will depend on error free memory.

Start with Steps 1 and 2 in Clean Reinstall - Factory OEM Windows 7 which I posted earlier so you would get a perfect reinstall.

I did do those two steps last night, but the USB/DVD toll says when making a USB bootable device that the files were successfully copied but could not put bootsect onto the USB device. I researched this problem through the tool troubleshooting and it says that I would need to have Windows 7 purchased from the Windows Store to get a 32 bit ISO file. The computer I tried this on has Win XP on it.

When I get home later today, I will try the manufacturer tool on the HDD.

Another curve ball has been thrown... I went and burned the ISO image from the WD site, but when I run it, it says that No Drive is found. I booted it from the BIOS and in the BIOS it recognized that there is an HDD in the PC. Even when the CD boots, I can hear the HDD working. Any suggestions?

If your BIOS recognizes the HDD, the bootable WD diagnostics app should see it. Which HDD is in there, the one that you've been having problems with or the old reliable one?

Swap HDDs to see if it recognizes the other one.

It would be great if you had another machine to run tests and confirm results (especially so for intermittent issues like this).

Well I got it working... Install is completing now... the problem with the OEM disc was that there was a little smudge of dirt on the disc.

Well, that'll certainly be a potential issue.

However I would still worry about the intermittent connectivity issue with that HDD. How is that explained?

Follow the steps in the tutorial so you have a baseline perfect install we can troubleshoot from if problems persist.

I still don't understand the HDD not being recognized by the DOS from WD, but I am currently sitting on the desktop of Windows 7 right now about to start downloading drivers etc. Maybe the ISO was burned to fast from the WD website? That would be the only assumption I have on the matter

EDIT: I am following the Clean Install of Windows 7 currently

Exactly how did WD CD behave when you booted into it? Is there a chance it was burned badly and needs to be reburned using Windows Image Burner or ImgBurn?

Do you have a WD HD for certain?

If you're folllowing the tutorial then you know to wait until all optional Updates are done before importing any drivers still missing in Device Manager. Do not change out Win7 drivers unless there is reason to do so.