Found this elsewhere.
There is an alternate way to restore your HDD. Turn off your system and when u see the red light, hold the power button in front until you hear a total of 4 beeps (1 alone, 1 alone, 2 together). It usually works on second try. it should show a screen and say hook up controller with a usb cord. Then it should show i think 6 options. Choose the restore option. it should work.