Welcome to the wonderful world of free software. It may seem scary and uncomfortable at first, but when one gets accustomed to the ways of the penguin, its difficult to turn back. Debian may not be the easiest flavour to cut your teeth on, but it is certainly one of the finest.
You will need at least two partitions for your Debian install, a small swap partition (82 linux swap) of approximately 512MB should suffice and a larger one (83 linux) to contain the root file system. However, it is not necessary to format them as the Debian installer will handle this task -- you should format the partitions as "swap" for swap and "ext3" for root.
Of course, this is all moot if the installer can't have access to your hard drive. The Debian installer for Sarge should support most IDE and some SATA hardware and I recommend using it over Woody:
http://www.debian.org/devel/debian-installer/
I have used some live CDs that fail hard drive detection so I would not make quick assumptions here. Please post more specs of your hardware if you continue to have trouble.