Unable to find disk in RHEL5.5 virtual machine on a VMWare hypervisor

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Issue

Unable to find disk in RHEL5.5 virtual machine on a VMWare hypervisor
When you click to create filesystem there is an error: no valid devices were found on which to create a filesystem.

An error has occurred. No valid devices were found  on which to create new filesystems. Please check your hardware for the cause of the problem.

This is a new vm rhel 5.5 created in VMware.

Environment

Red Hat Enterprise Linux 5.5

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