Did you try it with a blank unformatted drive? Let the OS installer do that work.
Received an Macbook pro 13inch with Lionx. This unit would only boot into safemode with command R
. It would not boot to CD or anything else.
Ran Mac's disk utility and was told it could not be repaired
Used Disk Warrior was told it could not be repaired
Used MacDrive 9 for Pc was told it needed to be reinstalled.
Formatted the HD, Re-partitioned the drive in the correct format.
Attempted to install LionX told it could not be installed once launched into the CD GUI
Created a new CD from a new image was told the same thing.
Leaning on a Bad Harddrive at this point