laptop wont recognise new hardrive

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I have installed a new 80gb hard drive into my Dell Latitude D505,
however it wont seem to recognise it.

When I boot using a XP bootable CD it tells me that the installation
is unable to continue because there is no recognised hardrive.

So I'm thinking that I probably just need to format it right?

If so how am I going to do this as previously whenever I had new
harddrives I just partitioned and formatted them from the XP setup

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