Hi All! Back again.
OKAY.....
I found my Acronis OS Selector floppy disk, which allows me to access its disk management tools. It looked at the new drive and told me that there were no partitions on it. I used its tools to create a new partition (20GB) and then booted up into WinME. Acronis OS Selector allows you to create partitions and format them into a variety of file systems used by Windows, Linux and other operating systems. It also will resize, copy or move partitions. A useful tool....
The new partition was recognised by Windows Explorer as a 20GB hard drive.
Of course just to be awkward it has decided to call it Drive:D and rename my D: and E: partitions to E: and F: respectively, which meant that all shortcuts and the like were to a different drive letter than the one they should be looking on. As a result a lot of things stopped working, but at least I have established what the initial problem is due to.
I have now deleted the new partition and my computer has returned to normal - as you can see ;0)
I'll have a think about my next steps to get the system running with an added second hard disc.
Thanks to all for your help so far.
Quack!
GtD.