Got it figured out. And just so you know, the windows setup has no problem finding formatted drives with all space already allocated.
I had to use the windows cd's command prompt to use a program called diskpart.exe to partition the drive and set the partition to active. At first, diskpart.exe couldn't do that (for some reason it refused to select the partition windows had made), but once I booted into windows and deleted the partition (and left the whole drive as unallocated) then went back into diskpart.exe it was able to create a new partition. I then set that partition to an active status with the command "active". After that, the windows setup had no problem detecting the hard drive, deleting the partition I had just made, creating a new partition, and then installing onto that.
That was some weird crap.