While adding storage to a Backup Server, I ran across a "bug" in Server 2003 Enterprise Edition while trying to format newly attached storage.

Here's the quick fix:

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First off, be sure to present the storage to the host in question. 
Go to the Guest VM and rescan the hard disks under "Disk Managment"
Your new storage should show up here
Now go to the command prompt and be sure to align the partition to 64K (reference this <a href="http://blogs.egroup.jasonmangone.com/?p=1316">article </a>by Steve)
Once the partition has been aligned, you would think you could just go ahead and format (and usually you could, but this is where I encountered the bug)
Assign the partition a drive letter, and now you can format successfully


Also for more information on more information on Performance Best Practices for vSphere, go <a href="http://www.vmware.com/pdf/Perf_Best_Practices_vSphere4.0.pdf">here</a>.