WD Caviar black BSOD when installing Win 7 in AHCI

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JureS

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Hi guys, I'll try to explain my problem in as few words as possible.

First thing, my build:
Board: Gigabyte GA-P55A-UD4
CPU: Core i7 870 @ 2,93 Ghz
Graphic: Sapphire AMD Radeon 8670
Mushkin 2x2Gb Red Culvert Kit @ 1600Mhz CAS 6-7-7-18
Seagate 320 GB SATA II HDD
+ WD Caviar Black 1TB SATA III HDD
Running: Windows 7 Ultimate
Trying to install: Windows 7 Ultimat
PSU: LC Power Arkangel 850W

Ok so here's the deal. I have Windows 7 Ultimate installed on my 320 Gb HDD and everything is running ok. I just bought a WD Caviar Black 1TB SATA III disk and I want to install Windows 7 there, since the disk is faster.
Here's what happens. When I connect the disk (it is connected GSATA 3 connectors), the disk will be recognized in bios and in Windows, but wont show under My Computer. I figured it must be some software bug so I formatted the disk in diskpart (clean format) and installed Windows 7 on it. At that time the GSATA 3 interface was set to IDE mode. It ran fine but after installing a big batch of Windows updates, the system hung at windows startup screen. After restoring the system to a previous state (i.e. before the updates), the system booted up normally.
I didnt know what was wrong so I formatted again, and this time I set the GSATA 3 to AHCI mode, since I realized this is a better option. When installing in AHCI mode, the computer expands the windows files but when the system is restarted, I get a BSOD (code Stop 0x000000B4 video driver failed to initialize) at Setup is updating registry settings. I really want to use the AHCI mode, but I cant get the system to work in IDE either so its really a bugger. I have no idea what could be causing this as the system works fine when using the other disk. Can the BSOD be caused by the disk? Anyway, I' open to suggestions since I really want to start using the disk. Any help would be appreciated.

Note: I have tried installing Windows 7 from a dvd as well as from a USB key.

Thank you,

J
 
@ MindoverMaster: I only have the first code its Stop 0x000000b4, i can get you the other sequences if you think they'll help.

@ memory: The 320gb drive has not been formatted, I'm using it now until I can get the 1TB drive to work. This has no concern though since I have only one disk connected at a time - 1TB drive is connected when I'm installing Windows on it. The only time both disks were connected was when I formatted the 1 TB drive using diskpart in Windows running on 320 gb drive.
 
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