Just re-reading your problem, what it sounds like is happening is your hard drive is booting the system but since all you did is format it, there's nothing to load once it gets to the initial AmigaDOS window.
You need to boot with the Install floppy and choose to install the O/S onto your HD, or even just copy the contents of the WB floppy to your partition (this will leave you with an incomplete install though).
If normal AmigaDOS disks won't boot, then your boot priority on the HD could be set too high, normally 0 is where it should be set. If you set it higher than the internal floppy's priority of 5, you won't be able to boot from the floppy except for non-DOS disks.
Hope that helps!
