Input/Output error when trying to install new HD

I followed previous instructions and agreed with your suggestion, my previously working 320GB HD had failed. I'm running OSX 10.4 startup disk. I boot, then Disk utility, then partion 1, name it and choose (Mac OS extended (journalled)) Format."GUID Partition Table". I followed iFIXiT guide on installing my new 500GB 2.5 internal drive. The mac sees it as a 3.6 TB WDC WD5000BPVT-00HXZT1 Media(which is correct exept the 3.6TB bit. If I erase, or Partition I just get Input/Output error

(Read/Write)(Verified)(Unformatted)