If memory serves me correctly, when you boot from the CD, holding down the C key. You will have the install screen, and both drives should show up as well. The icon for the install CD should be there as well. On the at CD is Disk Utility, you can use that to reformat the drive.
I also believe when you get to the install screen, the drop down menu provides some additional options, and you may be able to format the drive from there.![]()




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