Cannot Load OS to Hard Drive

I have a 2 GB Western Digital Black SATA Hard Drive that has not been used in several years.
If I attach it to a computer running Windows 7 from another hard drive, the WD drive is recognized and is assigned a drive letter. I run Tools from Properties and several (tens) bad sectors are found. I then format the disk as NTFS. All seems to go well.
However, I want to see if I can load an OS to the WD drive. I attach it to the computer using the same port and cable as I used for the Windows 7 drive. (I had recently reloaded Windows 7 on the same computer.) The WD drive is recognized correctly by the BIOS. When I then try to start the computer with an OS installation DVD disc in place nothing happens for a couple of moments and then there is constant beeping from the motherboard speaker.
I don’t understand this behavior except there is some problem with the HD drive supporting booting.
Does anyone have any ideas as to the issue, and might there be any tools to help discover the issue?
Thanks in advance.