Usually that is not the case.The FORMAT utility is read from the CD at the beginning (at 0%) and then loaded in RAM memory and then read from it all until it reaches 100% where THEN other data is being read from the CD in order to do the rest such as scanning the disk and then copying OS data on the HDD and so on...
So if the FORMAT utility was successfuly read from the CD at 0% and then loaded into RAM from which (and ONLY from it) was read all until 100% then it is not the CD disk issue since it is not reading the CD at ALL until the format procedure reaches 100% from where it reads the CD AGAIN in order to load other stuff and do the neccessary work.
So I would rather say it is the bad HDD issue.
But of course it could be what you say that the CD is dirty,but unforcenately the chances for that are like 1%
It could also be that the numbers on HDD sectors are messed up (especially in BOOT SECTOR area) and in order to solve that all zeros needs to be written on every single sector at least once using DBAN or KILL DISK.
Or maybe it's something completely else.The best way to find out is to try each solution one by one until the problem has been completely solved.
Cheers everyone!
(By the way I FINALLY fixed my camcorder ^.^ )