|Was the 1 Tb drive working OK previously?|
Unless you're really worried about someone being able to recover secrets on a drive you don't need to wipe it. The normal OS installation process can remove any old partitions and create and format new ones. I'm leery of some of the wiping software as I feel it may damage a drive.
My guess is the bios is seeing the drive OK. You should be able to check to see if it's showing in bios setup. But a bios seeing a drive doesn't always mean it's a good drive and that's probably why the recovery disk gave that error.
Go to the manufacturer's support page for the hard drive model. They probably have a download for a drive fitness test and maybe software to prepare a drive. I have my doubts the drive is good since you're getting the bios errors on it but running a fitness test on it would be the thing to try.