Correct Hard Disk Cannot Be Found

Hey all,

I bought a ylod from ebay and reflowed it. It powers on fine now but displays the error "Correct Hard Disk Cannot Be Found" I tryed unplugging and replugging the drive a few times but the error remains, I googled the error and saw people entering recovery mode and running the "3 - Rebuild File System" option, I tried doing this but I cannot get it to enter recovery mode I hear the two beeps but the system just repeats the error. I then got out my teensy and put the device into service mode which works and I can access the xmb but when I goto the format utility in system settings the machine gives the error again and reboots. I also tried inseting an unformated 5400rpm 500gb drive and a fat32 formatted drive but the error persits :|

Anyone got any ideas what else I can try?

Thanks in Advance
esj