Replaced hard-drive. Can't reinstall OS.

Just installed a new hard-drive in a mid-2007 2.16Mhz Macbook. Very easy to replace. Problem encountered in re-installing the OS. Using retail copy of Snow Leopard. Everything going smoothly until I arrive at the "select the disk where you want to install Mac OS X" screen. No HD shows up in the box. HD purchased from iFixit. I know it's not formatted yet. I thought that would happen as I began the OS install process. Am able to click on the disk utility. I see the HD, but I can't click on any options such as repair permissions or verify disk. Does this sound like a simple formatting issue? Also, I didn't have access to the original install disc set. They have been misplaced, that's why I'm using a new Snow Leopard disk. Any help would be appreciated.