How to install Mountain Lion on a disk that cannot be formatted in recovery mode?
You should be able to use dd to destroy the partition's header. You can then format (erase) it and run the install.

From the installer run Terminal and type the following:

dd if=/dev/zero of=/dev/disk0s2 bs=1024 count=1024


Do be warned, this will irrecoverably destroy all data on that partition. But it looks like that's what you're expecting. Make sure you don't accidentally target the wrong thing.

Also note that I haven't done this, exactly. I've used this technique to destroy the entire partition table, not just a single partition. But I think it should work.

When you're done quit Terminal and run Disk Utility. You won't get any complaints about Core Storage.