Formatted HDD, now I can't boot off of install disc

[SquareKite]

So as a means of formatting my HDD(I couldn't due it in the normal manner after installing refit), I put my HDD in my Windows desktop and formatted it to exfat. But after putting it in my Mac, starting it up holding down option, and selecting "Boot off of OSX install disc", I just get the Mac icon for a few seconds, then a circle with a line through it, then a flashing question mark folder. However, I have successively booted the hardware tester off of the App install DVD, so that's not the issue. HELP PLEASE!!!

 

[SquareKite]

The plot thickens: I somehow managed to get the HDD format to HFS+ from my Windows computer. Nothing changed. I also tried to access the SVRAM by holding Command+option+r+p. After a lengthy white screen, more question mark folders, apple symbols, and circle with crosses through them .