|What utility did you use to format the drive? Usually that's done as part of the installation--the option screen you got:|
to set up windows Xp on the selected item, press enter
to create a partition in the unpartition space, press C
to delete the selected partition, press D
You'd delete the partition and then recreate it and do the install. But I guess you didn't do it that way or you wouldn't be wondering about the option screen and wouldn't have gotten the 'no disk' message.
Is it a SATA drive? If so you need to install those driver prior to doing the install.
If it's a regular IDE drive, does it show in cmos/bios setup?
Here's an odd solution. The fellow swapped in a different keyboard: