I think your problem is the drive is over 4 gigs.
OS 3.1 can only see 4 gigs with FFS (fast file system).
If you setup partitions to 4 gigs and just forget the
rest it should probably work.
In order to use the whole drive you will have to change
file systems to Smart File System (on Aminet I think)
or PFS (a commerical file system (I think)).