Macbook Pro late 2006 2nd Hard drive issue. New user seeks help!

I have a Macbook pro late 2006 model. I have recently purchased a hard drive caddy that is designed to replace the optical drive and serve the original MacBooks Hard drive.

I have put a new SSD drive in the place of the original hard drive, removed the optical drive and put this caddy in place with the original hard drive.

My original hard drive was 100% working.

I have the system working perfectly with OSX Lion using the sad drive as the start up drive. Its certainly given the system a huge boost in performance but with one catch….

The original hard drive in the caddy is not showing at all in Lion and i can only see what i "think" is the drive in recovery.

In recovery disk utility the disk shows separately from the sad disk and is listed as disk one below the ssd drove showing a partition called "Mac OS X base system"

The HDD is really 120gb in size but in info it shows as just 1.39gb in size.

I have tried every route with it but the First aid tab and erase tab has every option greyed out.Restore fails using ssd image with error 16 resource busy.Info also says that drive isn't writeable and that it is Mac OS extended with Mount point /.