I also have this problem, It does not recognize it no matter what i try to do, format to NTFS, FAT32, HFS+ nothing.

My chipset:

Chipset
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Northbridge ATI Xpress 200 (RS480) rev. 10
Southbridge ATI SB600 rev. 00
Memory Type DDR2
Memory Size 2048 MBytes
Channels Dual
Memory Frequency 249.4 MHz (CPU/8)
CAS# 4.0
RAS# to CAS# 4
RAS# Precharge 4
Cycle Time (tRAS) 12
Bank Cycle Time (tRC) 17
Command Rate 1T