Have you tried running HDToolbox from your install disks(s) ?
Until it is partitioned, it isn't going to show up on the operating system as a viable drive.
It should appear on scsi.device in HDToolbox. You'll then need to create at least 1 partition, below the 4GB limit (hint, 100MB is more than enough for a Workbench partition) to put the OS on and make sure it is ticked as bootable.
Once you've created the partition and saved the changes, you'll need to reboot from your floppy disk(s) again. The newly created partition should come up as unformatted disk icons on your desktop. You'll need to format them (use quick format unless you like waiting). Once formatted, you can install your OS.