New HDD for 2007 Macbook A1181

Question

Folks I have been using my Macbook since it was purchased new.  Operating snow leopard 10.6.8 with a 2.4 GHz Intel Core 2 Duo with 4 GB 667 MHz DDR2 SDRAM.  The original HDD was getting full with running a lot of the software programs (Photoshop, Aperture, etc).  So I decided to replace the HDD. The following will show everyone that I am totally a rookie to this computer stuff. 
I pulled the HDD and placed a 1T 5400 drive.  WD SATA.  The install went like clockwork after backing up the system on a 1T external HD.  Then as most have read I got the ? of death on boot up.  I quickly realized that I could boot up and work off External.  I also booted up off the start up disc and the HDD doesn't show up.  It seems after reading a lot of post's that Apple doesn't like upgrade unless purchasing a new unit is the upgrade.  That is not in my budget at the present point so I turn to the masses to assist me in solving my problem. 
If I have to partition the Drive I am game for trying that but can't determine the size 320G or 500G?  The other issue is the upgrade to Lion so that all my other systems can sync via the cloud.  I have no idea how partition a drive so if someone has a link on how to do that operating off the external drive I am all for that as well.  I thank anyone in advance because this computer is partially my livelyhood.
Blair Darst

Answer 1

OK. Try this:
Drive Preparation
1. Open Disk Utility in your Utilities folder.
2. After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Note the SMART status of the drive in DU's status area.  If it does not say "Verified" then the drive is failing or has failed and will need replacing.  SMART info will not be reported  on external drives. Otherwise, click on the Partition tab in the DU main window.
3. Under the Volume Scheme heading set the number of partitions from the drop down menu to one. Click on the Options button, set the partition scheme to GUID then click on the OK button. Set the format type to Mac OS Extended (Journaled.) Click on the Partition button and wait until the process has completed.
4. Select the volume you just created (this is the sub-entry under the drive entry) from the left side list. Click on the Erase tab in the DU main window.
5. Set the format type to Mac OS Extended (Journaled.) Click on the Security button, check the button for Zero Data and click on OK to return to the Erase window.
6. Click on the Erase button. The format process can take up to several hours depending upon the drive size.
If you have more than one partition then repeat Steps 4-6 for each partition.
If you want more than one partition on the drive, then follow this modification to Step 3:
3. Under the Volume Scheme heading set the number of partitions from the drop down menu to the number of partitions you desire. Use the sizer to change the sizes of each partition to whatever you prefer. If you want equal sized partitions, then you don't need to change anything. Click on the Options button, set the partition scheme to GUID then click on the OK button. Set the format type to Mac OS Extended (Journaled.) Click on the Partition button and wait until the process has completed.
Now, if you want to transfer the system on the external drive to one of the partitions on the newly formatted internal drive do this:
Clone using Restore Option of Disk Utility
Open Disk Utility from the Utilities folder.
Select the destination volume from the left side list.
Click on the Restore tab in the DU main window.
Check the box labeled Erase destination.
Select the destination volume from the left side list and drag it to the Destination entry field.
Select the source volume from the left side list and drag it to the Source entry field.
Double-check you got it right, then click on the Restore button.
Destination means the desired volume on the new internal drive. Source means the external startup drive.