im having the same problem, can anyone help me what to make my hardisk recognize. The disk utility only show the OS X lion CD and if you try installing the lion,it goes up to the point of selecting the hardisk where again i cant see the hardisk....I tried to put my orginial Fujitsu 250 GB hardisk 5400 RPM and a Segate 500GB hardisk 7200RPM...however, i installed LION on 250GB harddisk and connected to another macbook using the sata usb cable and that macbook picked OS X Lion. Please help me out here...thanks!