New harddrive not recognized?

Hello, I purchased a 250gb toshiba hd to replace the 80gb toshiba hd in my 3 year old MacBook. I followed the instructions on replacing the HD, and everything went fine. Now my problem is when I start up the MacBook a folder blinks on the blue screen. Once this happens I insert my Mac OSx disk and it begins to ask me for language,terms and conditions, and then finally the "volume" I would like to install Mac OSx on. This is were I am LOST! No HD ever shows up to install it on and I cannot do anything further. Please help me folks, and yes I did search plenty but all I find is issues installing the actual HD nothing afterward.

P.S. After installing it a few times just to make sure I re installed my old HD and it boots up fine

You need to format the drive so that the OS X installer will recognize it. When OS X setup starts up, go to the menu bar at the top and find Disk Utility. From there select the new drive and format it as Mac OS X Extended (Journaled). Once it gets done formatting the installer will allow you to choose this drive to install OS X on.

Hey thanks Kash, I did that it and it worked perfect. My Macbook like a whole new machine, upped the HD from 80 to 250 and ram from 1gb to 2gb