It's OK i found out myself. So there was a SATA 2 hard drive listed but not enabled so i enabled it in the BIOS then restarted, it then said it had found new hardware and installed the drive and gave me a message saying "new hardware is installed and ready to use"
It still wasn't listed in My Computer though so i've done what you said linderman and gone into Disk Managment, this is what it looks like:
So Disk 1 is obviously the new drive however when i right click on it i haven't got the 'Format' option like you said, the options i've got now are 'New Partition', 'Properties' and 'Help'
I'm presuming i go on to 'New Partition' yes?