Are 2TB hard drives too big for an 24" iMac 7,1 (from late 2007)?

[UlfDunkel]

Two days ago, my iMac started behaving like crazy, with spinning wheels to death, hanging apps and file permission failures. So I ran Disk Utility which found and repaired a bunch of things, while "Repair Volume" recommended to backup all my stuff and reformat the drive.

Done - nothing helped. This morning the drive was really stone-dead. So I decided to change the HD myself (following some HowTo's from the web). I bought a new WD 2TB HD and replaced the dead drive with this one.

Now that I try to boot from my Snow Leopard Install DVD, it won't find the virgin drive or even start its Installation app, but simply jump to and fro reading some stuff, while the white screen shows a gray folder with a blinking question mark.

Well, that's my story so far. Is the drive which I bought, too big for the iMac 7,1? What else could have caused this issue?

Any help or comment is really appreciated.

 

[UlfDunkel]

Boot Failure Resolved

Holy cr...

It was the [option] key. When you have replaced your hard drive by a new one which has no partition, no nothing, and you insert the Mac OS X Install DVD, I would have expected the firmware to be smart enough and recognize that there is only one start volume available. - But nooo, it fooled me the whole afternoon.

As soon as I rebooted with [option] key pressed, I saw the root user password lock screen, entered my password, could finally select the DVD and ... I am back in the game.

Everything is so smart in Mac OS X, why has this situation not been covered by a smart solution?