I do believe your drive is no good. I mean, it is possible that the BIOS is messed up and can't tell the computer what to do with the drive, but there is a better chance of you finding a gold nugget in your Cheerios.
You can always test this theory by getting a boot floppy with CD Rom support and accessing the drive that way. My hunch is that it will tell you that the device is not ready or can't be found.
Also, don't forget to make sure the ribbon is plugged in firmly on both ends. That's kind of important.
Check into it and let us know.