File System Format

I have a 2000 model imac which originally came with Mac OS 9.6. I've purchased all new CDs for software and the new OS X. I think it's the original OS X cause there is no version on it that i saw. Anyway i had a hard drive in my windows based computer formated in the NTFS file system and i want to put it into my IMAC and put the new OS on it. Even after deleting the partion i still couldn't get it to recognice the new the drive. The drive is 200Gb. I pulled out an old 40Gb h.d i had and partitioned it into two 20 Gb h.d. with the FAT32 format and the 'select destination volume' option still wouldn't give me the hard drive as an option.

Things i've done:
deleted all partitions went with an 'unpartitioned' drive
created a 'raw' partition
created a NTFS partition
created a FAT32 partition

The OS goes through the installation fine until it's time to select a location of installation and only shows up the cdrom drive which of course i can't select.

Is there anyway of getting my mac to recognize the hard drive?

It sounds like Mac OS X is not "seeing" your new drive at all, which sounds like a hardware level compatibility issue. Can you provide more info on the model of iMac you have, and more on the hard drive itself? Could we have a new SATA drive here that is not recognized by older (perhaps PATA) hardware on the iMac, or some other form of hardware incompatibility?