Which release of GParted was used there? For MS partitions the 0.3.3.0 release was the last platform independent version seen at SourceForge.net: Files
Once Vista is on you can now easily use the Disk Management tool for resizing any partitions other then the one Windows is running on. GParted would be used to create the primary followed by the Vista installer formatting it without any reference to need for the live cd.
If you installed Vista from a different drive it may have made a reference to it then. Try uninstalling the drive in the device manager and reboot to allow Windows to reinstall it without the live cd in to see how that goes. If the drive is still good you may see that corrected with a fresh detection.