The post was made in the 'Alternative OS'-section, sp stop whining! :-P
@Matt_H
You need to partition the drive first.
As for the drive not showing up properly in the XP-install, you probably have the drive in compatability mode, and need to set it to SATA-mode. Then boot from the CD, and then install the SATA-drivers prior to partitioning ('Press F6 to use a 3rd party SCSI yada yada...')
If that doesn't work (or if there is no floppy drive), try updating the BIOS.