Oz, if I remember correctly the first thing I did was get UlaunchElf installed on the memory card. I then ran UlaunchElf from there and selected file browser. Then I went to MISC and selected HddManager. I then created a partition (I think mine was one gig) called Crystal and formatted it.
This got it in a condition that BootManager would see it when I told it to load the HDD driver.
Hope this helps.