Problems installing OS X 10.4 on new internal hard drive!!

Ok guys, I know, this is REALLY long, but I want to Thoroughly explain Everything that I did and the results of what happened so I can get the most accurate help and answers possible! Thank you for taking the time to read this and help me! I need my laptop for school and work (but mostly school), and can't afford to buy a whole new laptop right now. So Thank you in advance!

So Basically, my MacBook won't recognize my newly installed 750 GB internal hard drive, but Does recognize it when it is connected externally through a SATA to USB cable. Though my old hard drive is recognized both internally And externally. So here's the chain of events....

Ok, so I've read some other posts on this site and on other sites,but nothing that solves this problem. I haven 2006 13" MacBook and the original hard drive started to fail, so I bought a 750GB seagate SATA hard drive, 16MB, 7600RPM. I backed up all my information from my original (old) hard drive, and while I was waiting for my new drive to come in the mail, I Zeroed the data on the Old Hard Drive, then partitioned it with 1 volume, GUID scheme, Mac OS X Extended (journaled). Then I re-installed OS X 10.4 on the old HD from the install disc, then upgraded all the way to Lion 10.7. Everything installed successfully and went smoothly, so I thought that I now have an extra hard drive, Great!

Well, Once my new hard drive arrived in the mail, I installed it inside my Mac, popped in the install disc, and attempted to ready the HD for the OS X 10.4 installation by erasing then partitioning, but when I went into the disk utility (from the install disc) to erase and partition the new hard drive, the specs on it were all wrong! It stated that the total capacity of the drive was 5.5 TB, when its actual size is 750GB! So it wouldn't complete the partition because of an "Input/Output error" (I tried to partition it with 1 volume with GUID Scheme, with Mac OS X extended (journaled). I couldn't even zero out the disk because of the same Input/Output error.

I was pretty boggled by the situation, so I took out my new HD and put back my old HD. You should also know that I have a SATA to USB connector, so I decided to connect my new HD through USB and try partitioning it using the disk utility running on the Lion OS on my old HD. When I selected my new HD in disk utility, all the specs were fine and everything was in working order while it was mounted as an External hard drive (Even the disk's total capacity was correct at 750GB!). So I booted up the Mac using the install disc and created a new bootable image of Lion 10.7 from my old HD and saved it on a separate external storage device to I an install it on my new HD. Then I restored that newly created image onto my new 750GB HD (from the separate external storage device using the Install disc's Disk Utility) and everything was successful, meaning I now had an EXACT copy of my old HD (which was fully bootable and worked flawlessly) onto my new HD (with the only exception to Exact, that the new HD holds more data).

So before I re-installed my new Hard Drive back in to the internal port in my MacBook, I decided to try to boot from it as an External Hard Drive. And... It worked!!! I was able to boot up and everything looked exactly the same as my old HD!!! The disk itself was successfully Verified in disk utility along with all the permissions on the disk AND on the volume. So to my assumption, I though everything was good to go and my new HD was ready for use as an internal HD. WELL... After I re-installed the new HD in my Mac and tried to boot from it (thinking it would boot just like it did when it as connected externally), but again it Was Not recognized!!! So I again popped in the install disc and opened up the disk utility and all the specs of the new HD were still in check and perfect, except that it WENT BACK to stating that the total capacity was of the new HD was 5.5TB!! yet it stated the the VOLUME's total capacity was 697.8GB (this is still with the image from the old HD restored on it).

So I plugged in my old HD through the SATA to USB connector and tried to boot from the OLD one as an External HD (to rule out that it wasn't something besides the internal aspect or the Hard Drive Cable), and everything booted up fine from the external old HD!! It seems that I can only boot from/use my new 750GB HD if it is connected as an EXTERNAL Hard Drive through USB. So again I rebooted (because i wanted to try installing OS X 10.4 on the new HD One more time), I held down the Option key to select the volume to boot from, and selected the install disc to try to install OS X 10.4 on the new HD (mind that it is still internal), and the volume of the new HD appeared on the list along with my old HD's volume (which was still connected through USB)!! But when I went to select the new HD's volume, It stated, "You cannot install Mac OS X on this volume. An error was encountered while running the the VolumeCheck tool for Mac OS X" [and yes there are actually 2 "the" words in the error description]. The only thing that I can think of that could be causing this error is the wrongly recognized disk capacity of the New HD from 750GB to 5.5TB. (To note, I tried zeroing out the new HD all over again and tried, and tried Everything all over again, but without restoring the old HD's image on the new HD, and I still got that same "VolumeCheck" error. So yet again I zeroed the new HD, but I this time I DID retore the old HD's image on it again, and I STILL got the same VolumeCheck error...).

SO I removed the new HD from the internal port of the MacBook (it still had the restored image on it with the Disk, Volume, and Pemission successfully Verified). (Mind again, in the detailed disk INFO selection of disk utility, ALL of the information, with the exception of "disk number" [on new HD the disk number = 0; On the old HD the disk number = 6. I'm not sure if that makes a difference or not], is EXACTLY the same same on both Hard Drives!

So the overall conclusion: I can only boot and use my new HD if it is connected Externally through my SATA to USB cable, yet I am boot and use my old HD regardless if it's connected internally or externallly.

SO, Does anyone know a solution to this? so I can either get rid of that VolumeCheck error and install OS X 10.4, then Snow Leapord, then Lion on my new HD, OR somehow get the new HD to be recognized as bootable when it is installed internally? I guess It is possible to keep my old HD installed and just use that alone, but I need more data capacity than 120GB, and I don't want to have to lug around the new HD with the laptop everywhere I go!

I just need Any possible solution so I can Solely use my new HD as an internal, bootable Hard Drive. Can anyone help me?? I really need it!!

And again, Thank you in advance for helping me!!!