First you do not need to format the drives before you put them in th SC101 case. Once they are installed in the case, you will start up the manager application and just follow the wizard setup. Then create a new drive, then select one of the listed drives. If there are no listed drives then you have a problem. But it should list an IP address like 192.168.9.100(drive size). select it and go to next step to create a partion on the drive. Then just keep going with each step. I can not do all the steps as I have no free space on eeither drive to give you all the steps.