Sounds like an issue with this particular HDD. Your system is booting up, so that's the good news. If you have an external enclosure, or one that you can borrow, try to connect the drive after the system finished booting via an USB port. If not, repeat the process you just described and after you get to the desktop you can try do the following:
-go online and download Killdisk. Is a low-level format utility that "zeroes" the HDD. Run that utility on the new HDD (make sure you select the correct one, you don't want to run it on the system drive), then format it in NTFS. You can install killdisk on your PC or, even better, you can download a bootable CD image that you can burn a CD from; disconnect the system HDD and leave the new HDD connected, then boot PC from Killdisk CD, and do a zeroing on it. Then you can format it as you wish and give it a try. If still not working and giving you that click noise, it may be that the HDD is bad.
One more thing, make sure the PSU can support the new HDD in addition to your old configuration. Sometimes these OEM systems are spec'd to the limit, and any new component will exceed the PSU's capacity.