I cannot believe how retarded this is. Just started the Leopard install and planned to clean install. But it wouldn’t let me choose a hard drive to install. Seriously, this should have been solved in QA. One solution I read was to just wait. A better one is

# open up terminal from utilities
# type df -k
# firt time, the internal volume isn’t seen
# type df -k again

I found the solution here. Where you can also read other ideas.

Hopefully this will work. Leopard is churning through now.