IMac (summer 2001) - hard disk or controller problem

I recieved a dead iMac from a relative who was told the hard drive has failed. I researched (I'm a PC guy) and found out this is a Summer of '01 special addition iMac. Original specs are with a 60GB hard drive, slot load CD (/DVD?) and 256M of mem, etc. I put in a known working 80G Western Digital set as a master, but when OSX asked for me to select an install destination, there was nothing there to select. I tried an old 6.4GB IDE drive, another 80GB, CS and Slave jumper settings, everything. I'm at the point now where I think the controller is shot.

Am I missing anything? Thanks!

Sounds like the controller is indeed shot. You might have no other option than to replace the motherboard, which I'm sure would have to be done through Apple somehow.

Probably a dead end. I'd part it out.

Before you toss it out, select the disk utility option at the top of the screen. make sure you format the drive for MAC OS. Once you do this, the drive should be good to go as a recognized OSX partition.