Ok,
1. Create the Partition (without formatting it)
2. Restart the Computer
3. Format the partition
If this fails, Try creating the partitions by starting up in dos (if you can)
Or (if you cant) using a windows setup disk and boot the computer with CD-Rom suport (the option that gives you dos)
Use the command "fdisk" to see and create partitions from dos
If this fails, See if you can get your hands on a HD caddy (they make HD portable, normally connect via USB) and put you HD in it and try formatting it again
Im guessing this is a 2nd HD as you ahvnt said that the windows installer wont format it.
These are all things which have worked for me when my HD (maxtor 80GB!) refused to format (except the caddy, i had to do that when i my disc beacame un-bootable to recover my documents.... but it formated fine in the caddy)
Good luck!