Rhodent,
You obviously have a BIOS that supports more than 8gig cause your existing drives are supported.
Here's what I recommend:
Get hold of a 98 boot floppy that includes FDISK and Format.
Set the 60 gig to normal, none of the reduced cylinder stuff.
Boot the 98 floppy, Fdisk with large drive support (FAT32) then format.
Boot your WINME system and I'll bet the drive is recognized.
Running the Maxtor proggie in ME is causing the problems, my guess would be that ME steals INT13 for some reason and the Maxstor proggie thinks your BIOS doesn't support INT13 extensions which it does.