Unable to format new Seagate SATA hdd

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MP4-20

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So I just bought Seagate 160 gb SATA drive. The problem is that I cant complete the format. I can create a partition in both disk management program in windows and in command prompt (boot from cd) but it just won't complete a format. Here is the error message I get



Everything is fine here:



When trying to format from cmd promt the system would just hang and I have to hit reset button.
I run Abit IS7-E mobo with latest bios. p4 2.8 and 9800pro. All stock speed. My system disk is also SATA Seagate but 2 years old. Just bought a Thermaltake Soprano and overheating is definitely not an issue.

Do you guys think its just a faulty hdd? Should I return it and ask for new one? Maybe its just a crappy 2 year old mobo with old chipset that is not compatible with newer hdds. I really dont know.

Any help regarding this problem would be appreaciated.
Thanks.
 
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