I am assuming you plan to do a completely fresh installation of Windows to this new HDD from an Install disk. You are right to understand that a blank disk needs to have one or more Partitions created on it, AND to have those Partitions Formatted, before it can be used. Since you appear comfortable using Windows' Disk Manager tools for these, we'll go that route rather than using easy other tools.
The fundamental plan I have here is to make only the first Partition for installation of Windows using the Install disk itself. After Windows is running, you can then use its Disk Manager to create and Format the others.
There is one important point to check before starting, depending on which Windows Install disk you have. IF your disk is for Win XP original version (with NO Service Packs included) or any earlier Windows, you could have a small problem. If you have Win XP with SP1 or later, or any subsequent Windows for installation, skip the rest of this paragraph! The "problem" is simply that original XP did not have "48-bit LBA Support" and hence could not make or use Partitions over 128 GB. So IF you are there, and IF you plan to make your installation C: Partition larger than 128 GB, you have a problem. Otherwise, skip the rest of this paragraph! IF your actually have this problem and need to fix, you have only two choices: get a more recent Windows Install disk version, or use another computer to update your Install disk via the Slipstream process. This process allows you to make your own new Install Disk with all recent updates included.
Next thing to check: HDD mode and driver installation. Windows XP in any version only knows how to use IDE drives without help; Vista or Win 7 both can use native SATA or AHCI, also. So if you're using Vista or Win 7, go into BIOS Setup, make sure the HDD SATA port is Enabled, set its mode to whichever you like (not RAID), and you're good to go. BUT if you are installing XP, you need to make a choice. One option is to set the mode to IDE (or PATA) Emulation; this has the BIOS make the SATA drive appear to Windows to be an older IDE drive and it all works just fine. The other option is to choose to use native SATA or AHCI mode in the BIOS, but this means you will have to be prepared to install a driver for this type of HDD device from a FLOPPY drive. So you need a floppy disk drive, AND you need to prepare a floppy disk containing those required drivers before you start. Early in the Install process there's a prompt to push "F6" if you need to install external drivers, and this is when you install those extra HDD device driver(s) from floppy disk before proceeding with the Install.
OK, so we're not having a problem with the 128 GB limit. Set up your system BIOS screens to use the optical drive as the first boot device, and the HDD as the second, and nothing else for now. Save and Exit. Place your Windows Install Disk in the Optical drive and let it boot to there. Fairly soon you'll see that option screen that lets you push F6 to allow installation of extra device drivers. IF you are installing XP and have prepared a floppy disk to install drivers for native SATA or AHCI mode, this is when to use them. But if you don't have to do this, just ignore and it will proceed to finding your new HDD.
It will offer you some choices for how to create and Format the bootable Primary Partition on this drive. By default it probably will try to use all of the drive, but you have indicated you plan to make several smaller ones. Set the size you want for the C: drive with your OS. (As outlined above, IF you are installing an older Windows you may not be able to make this one over 128 GB, but that may suit you just fine.) Let Windows complete its entire installation. When it's done, go to the Windows Update sites and update everything fully.
NOW you're in a position to use Disk Manager to create your additional Partitions. I suggest they be done one at a time to keep it simple. To start, click on Start and RIGHT-click on "My Computer", then choose "Manage". In the left pane of the resulting window, expand "Storage" if necessary and choose "Disk Management". The lower right-hand pane (scrollable) will show you one block labeled "Disk 0" at about 460 GB. It will contain two main sub-blocks: one that is your functioning C: Partition, and another labeled "Unallocated Space".
This panel also should show you a block for your optical drive. Time for a little planning. What drive letters do you want for your drives? For example, if you want four Partitions on the HDD to be C:, D:, E: and F:, and have the optical drive as G:, now is the time to do that. RIGHT-click on the optical drive's label block that says "CD-ROM 0" or something like it and chose to change its name to the letter you want. This will free up other letters for assignment to the new HDD Partitions.
Back at the block for your HDD, RIGHT-click on the Unallocated Space and choose to Create a new Partition. At this point you may have a helpful Wizard pop up to assist you. You can create either more Primary Partitions (up to 4 total, I believe), or Extended Partitions (I don't know the details of these). A Partition may be bootable or not - for just data use, make it NOT bootable. The details of the second Format operation may be settled here within the Wizard, or may be done as a completely separate operation after the Partition is created. In either case, I suggest you choose the NTFS File System unless you know you need FAT32 for something. A Quick Format establishes all the hidden tracking files required and finishes preparation of this Partition. A Full Format does a Quick and then exhaustively tests the disk for errors, but takes MANY hours to do it. Your option.
Once a new Partition has been Created and Formatted it should have a letter already assigned to it. If it's not the letter you want, RIGHT-click on the block and change it. Exit out of Disk Manager and reboot to check that this new disk shows up in My Computer. Repeat this process to create any other Partitions you want.