I hate when a new hard drive has bad sectors.. But there may still be a chance to save it but if you still have the receipt I would get an exchange..

Download the Ultimate boot cd and burn it to a disc...When you boot up the other pc make sure you boot from cd.. Once it boots up click Hard Disk Wiping Tools.. The first program there will be Dariks Boot and Nuke click that program and let it wipe write 0's to your hard drive.. This can sometimes (allot of times) fix bad blocks and sectors. This will take a good day or 2 since you have such a bog hard drive..

Master slave jumpers set correctly? Have you tried to formate it on the other IDE channel? Tried a different IDE cable? You may want to remove the other drive that is having problems to make sure it's not causing your format problems, especially if both drives are on the same channel. If you can, try formatting it in another PC. If it does format OK in another PC then you have a problem with your PC not the hard drive. If that is the case there may be nothing wrong with your current hard drive.

I ended up being able to format it with windows, but now its very very loud. Its louder then the drive I was replacing. I wont buy another seagate if out of 3, all 3 have been bad in one way or another.

Howdy Venix and sorry for the long delay in posts (my fault)

Have you tried the UBCD and wrote 0's to the disk?
It is alright if the hard drive is loud... You just do not want to hear like a scraping sound.. Download the below program and run it as it all is once download...
Report back it's findings and we will be able to tell how it is performing

HdTach