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Okay... good. Select the drive at the very top there where it says 500.11 then erase to Mac OS Extended, Then quit Disk Utility and install the OS.
 
Okay... good. Select the drive at the very top there where it says 500.11 then erase to Mac OS Extended, Then quit Disk Utility and install the OS.
Ok i erased to Mac OS Extended, (Journaled) then got this message now
 

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