Okay recently I called M$ and found out a way to format the hard drive
In order to do it, you have to go to Settings and then System Info
nows the hard part
every xbox has a unique HDD reformat code
so what you have to do is contact Xbox Support and ask for it, theyll ask why and youll have to go from there
heres a vid to prove that its real
MY CODE IS Y, Y, X, UP, X
http://www.youtube.com/watch?v=hBFoJZJ9BL8