DPM uses unpartitioned/unformatted disks. Those are the disks it will list when you go into the Management / Disks tabs.
If you want to use space on a disk that you've already formatted and given a drive letter, then you add this disk as a "Custom Volume" in the "Modify Disk Allocation" dialog when you create the protection group.
However, you're better off just using an unpartitioned volume.