When you run the installation disk and get to the point there is no disk image to install on, go to the menu on top and pick disk utilities again and see if that lets you see the disk and pick it and reformat again, just normal this time.
I have recently upgradet from MacBook to MacBookPro and recovered all of my system settings via TimeMachine and Migration Assistant perfectly fine.
Since I want to sell my old mac I decided to 7 time secure erase my old hard disk and upgrade the software from SnowLeopard to Lion which I had never installed before. Here comes my problem.
I opened Disk Utility after rebooting with the OS X Lion mounted on an external hard drive and started the Secure Erase.
The big problem, that I realize now, is that instead of selecting the "Machintosh HD" image I selected the one above it "160.07 GB Hitachi HTS7.."
I left the machine do its job and after it had gone through the 7 erases and the progress bar was almost at the end, the hourglass went on for hours, leaving the process uncomplete.
I decided to force restart the computer thinking "well now the hard disk is clear, I can install OS X Lion"
When I rebooted the computer there was now internal HD image to select as a destination for OS installation. That's when I realized that I had problem.
My computer knowledge is limited and I should have been more careful, but that's life.
Does anyone know how I can solve this problem?
Any help is appreciated.