You've hit the 137 Gig barrier! Here's a white paper that describes your limitation;http://www.maxtor.com/_files/maxtor/en_us/documentation/white_papers/big_drives_white_papers.pdf
If your new BIOS doesn't solve the issue, what you need is to set up two partitions on your drive. It should have come with installation software to do that for you, or you could download the installation utility from your hard drive manufacturer.
Alternately, you could just format your drive to the maximum 137 gig and install your OS, then come back later with a disk utility and format the remaining hard drive space as a second partition.