Go to Start, Right Click on Computer, choose Manage. Select Disk Management from the list on the left. Choose the 1TB hard drive, there will be no partition on it, right click in the bar that says something like, blank disc or no partition, select create partition, and run through the wizard.
You probably just want one partition, so leave the size at the max, then the format should be NTFS, I'd uncheck the box that says "quick format" if I were you, I get better results with a full format.