I have a 500gb WD My Book that I am tryng to attach to a Windows Server 2003
server. It shows up under devices, but it is not showing as a disk or
creating a drive letter. Is there some kind of security setting that is
preventing this?

Was it previously used on a Mac?  I did this with one, and the Mac changed
it in some way that Windows no longer assigned it a drive letter (I didn't
really care, as it was really only for use on the Mac anyway, so I never
bothered figuring this out).  Windows didn't list the partion as unknown or
foreign, it just showed in disk management with no letter.
A repartition and format may be called for in this case?

Plug the USB in and fire up the Disk Manager in Administrative Tools >
Computer Management > Disk management. I see this when CD drive letter
have been previously taken by removable USB or Firewire drives.

- Thee Chicago Wolf

I have a Server 2003 Enterprise Server with 4 SATA drives installed ALL
primary partitions ... I too tried to fit an external drive via usb which
does show up in the disk manager ... But you cannot have 5 primary partions..
this was from microsoft support.  Which I have tested and is true.. if one
mas configured as an exteneded partion ( which I tested on a new
installation) I could then add an external drive.  Hope this helps.
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