HDD format issues

So, I'm working on building a PC and i'm trying to salvage as many parts as I can from things I have around the house (I'm using a kitchen sink as a heatsink. Kidding, but you wish I would)

So, a main part i'm salvaging is a 250GB SATA 3GB/s HDD that I took out of a USB 2.0 external HDD enclosure I got off of craigslist.  I know that it's not very much storage, and it's not SATA III, but it'll save me some money until I can buy a brand new HDD from Newegg.  So, my problem is, I was trying to put together my system the other day, I borrowed my friend's processor (I haven't bought mine yet) and attempted to install windows 7 Home Premium 64-Bit onto the harddrive, but when I got to the screen to pick a harddrive to install it to, the said harddrive won't show up on the list... So, I put it into my friend's PC that's working, and formatted it.  It only has an option to format it as NTFS though, is this a problem?  After formatting, it still wouldn't show up so I could install windows to it.  Can anyone get me some help with this?

Also, off the topic of HDDs, my specs for my computer will be (when I finish building):

FX-4100 AM3+ Processor

Asrock 970 Extreme3 with UEFI BIOS

8Gb G-skill Ares 1866MHz RAM

Gigabyte Nvida GT 630 with 2GB of DDR3

620W 80+ Certified PSU (forgot the brand)

Cooler Master Hyper 212 Evo

NZXT Gamma case

 

Any comments on how this system might work for playing minecraft? And maybe BF3? Thanks

Try to format it with this..... http://www.dban.org/download

 

It should format to nfts but it shouldn’t at the same time you just want to erase the data of it and leave it bare.

 

And it should have absolutely no problem with minecraft i'v herd someone play crisis 2 on a gt 630.