Your information is a little vague. How about posting the specs of your system, specifically the hard drives that you've having issues with. A more in-depth description of the 'blue screen' would be more appreciated too, such as if it's a true BSOD (as such it'd have an error code at the bottom e.g. STOP and a number starting with 0x) or whether any other text is displayed.
You've noted that it formats the drive but fails before installation, normally I'd say this is a hardware failure either on the arm or read-write head which is generally fatal to a HDD, but you say it happens on two different drives. Have you considered trying the install by putting the HDD in a different and fully functional machine and then transferring back to the 'new' machine if it's successful?