Unable to install Mountain Lion on my hard drive

I'm trying to upgrade my early 2008 mac pro from Leopard to Mountain Lion using a bootable usb drive but I'm having trouble doing so.  When I try installing mountain lion to my hard drive (Mac Drive 1) - The hard drive is greyed out and says 'you can't upgrade this version of OS X'.  Yet it looks like I can install mountain lion onto my second hard drive (Mac Drive 2) for some odd reason. 
Here's the details for my mac drive 1 which I'm having trouble with (I noticed the volume format is greyed out on disk utility as well).....
And here's the mac drive 2 info which I don't want to install mountain lion onto but looks like I can....
Any help would be much appreciated!  Thanks a lot.

I can't answer the bad hard drive question without some guessing. Not that smart.
Do you have a bootable copy of the Mountain Lion installer?
If not download the following. The site says it will work with 10.6:
http://blog.gete.net/lion-diskmaker-us/
That program will allow you to make a bootable DVD or USB with Mountain Lion on it.
You can boot off of it, erase the disk, and then install Mountain Lion.
I think you should be able to reinstall from carbon copy cloner, but I haven't used that program.  During the setup it will ask you if you want to import files, but I don't know if it can read carbon copy cloner. I know it can read a Time Machine backup.
A clean install is generally better anyway.
If you get Mountain Lion installed, not everything works like it did in 10.5/10.6. For an example, scrolling is reversed, but you can change it back to the way it is in 10.5/10.6 in System Preferences. After spending some time in System Preferences, my computer acts pretty much the way it always did.

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