Windows 7 does not detect my new hard drive?

It sounds like you need to initialize and format the disk through disk management. It should be in Administrative Tools in the Control Panel.

Based on the same answer that Holocryptic posted.

1)
I went to the Windows 7 Start menu and clicked it, then I typed in diskmgmt.msc into the search box that says "Search programs and files" diskmgmt should come up as the search result and click on it to open it up.

2) From this disk management program I was able to find my 1gb drive and right click it and format and assign a drive letter to it.

3)
Once done it shows up as a working drive, very simple!