Mac OS X Mountain Lion not installing correctly

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Hi,
So my hard drive had a corrupt file so I had to wipe it. I went to reinstall the OS X and it told me there was 68 hours remaining for the download. So I instead made a bootable usb of my OS X Mountain lion and tried installing it that way. It gets to about 94% with 2 minutes left and stalls. I go into Disk Utility and checked the hard drive. The Hard Drive itself is SMART Verified and has new errors. However, the partition Macintosh HD which holds the 500GB has errors and says it needs to be formatted. I reformatted it and named it the same thing, changed the name and even tried doing 2 partitions. But every time even if I wipe the hard drive again it says there are errors and it needs to be re formatted? Am I losing my mind? I've never seen a hard drive be fine but the partition be broke after reformatting it numerous times.
Thanks for your
 
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First of all, what Mac model are you using, and just as important, its' age.

Secondly, is the 500 gig drive the original one that came with the machine?

Until you provide that information, just a couple of comments. First, the drive could be going bad. Usually, via my experiences, the useful life of hard drives in "normal" use is around 5 years.

Secondly, if the drive is still good, when you erased your hard drive, I assume you used Disk Utility. I'll also bet it did not take very long for that to happen. While that "quick" way may be OK in most instances, there are, possibly, some cases where the "fast" way does not truly get rid of everything. So, unless you have a more robust Disk Repair program like Disk Warrior or Tech Tool Pro, you could erase it again, but this time, via the "Security Options..." choice, click on that. I believe that the Disk Utility software in Mountain Lion will have 4 or 5 choices. The "last" one will say something like "7 pass". That is the one you should try, and then click erase. But, it will take a long, long time. So, you should start that right before you go to sleep. When you wake up, it should be done, and then you can partition it, if desired.
 
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Regarding my post above, the second sentence should say:

Secondly, is the hard drive the original one that came with the machine?

Also, when I mentioned about erasing the drive, I mean erase the entire drive, not just the Macintosh HD partition.
 

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