So I have a Seagate hdd that has an xci on it and Im trying to install via sx installer or tinfoil but when I try to search for it I cannot find the file. Does my hdd have to be formatted or what would I need to do. Im running 8.0.1 emunand

Anyways, the HDD needs to be formatted to exFat,

No, you won't. His data will be completely fine. There's no need to make it any more difficult with having it formatted as fat32. ExFat is completely fine for HDD. I would recommend fat32 for homebrew purposes though, but that's not the case here.
