Formatting through windows doesn't get rid of data, just marks the sectors available and recreates the file system. Since you are trying to format, try using killdisk and get the drive back to factory condition, then try the windows format and install. When you use killdisk, make sure the only drive connected is the one you want to scrub. download the bootable iso image file and create a bootable cd, then boot from the cd and run the program that way. It does take quite some time, depending on the size of the drive, as it writes zeros to all sectors.
http://www.killdisk.com/downloadfree.htm
How to Burn a Bootable ISO File
edit - I don't know how many sticks of ram you are using, but try the install with one stick only.