1). On an IDE/ATA interface drive, it is almost impossible to destroy the HDD Format. Low Level format can only be done with specialized equipment. Format operation on a PC just sets up the file system, and makes sure the media is good.
2). More likely what you are seeing is the inability to read one or more very important sectors on the HDD. This does cause applications to 'freeze',and give strange error messages.
So step 1 is to run Scandisk on the partition with the full media test. Errors in some parts of the file system are not recoverable or reconstructable as far as MS is concerned. Scan disk will either be able to deal with the error, or it won't. If it won't deal with them, then you are going to have to start over (Fdisk and Format). The question is do you want to start over with a New HDD and try to copy whatever you can off the old one, or do you want to wipe out the existing HDD? On most systems today, you can simply connect the new HDD on the cable where the old was, and move the cable from the CD drive to the old HDD until you are done with it, Plan B is to buy an IDE PCI adapter, which gives you another pair of IDE ports. For you needs a 66, 100, or 133 MBs adapter will all work just fine.
If format cannot clear the media errors, it is time to serious consider replacing the HDD if you haven't already.
Other thing you may wish to do is to obtain a copy of the Disk Fitness Test. It is Floppy resident and bootable, and is used to test IBM/Hitachi HDD's in a non-destructive manner. I think you can download for free from the Hitachi Global storage system web site. If the DFT says the HDD is shot, there is no point in trying to reformat the HDD.