It looks like the drive you are trying to format is a 2nd hard drive. Is that correct? If so, then how is the drive partitioned?
I have a 2nd hard drive in my system that only has 1 extended partition. For some reason that I can't explain, Partition Magic indicates that the extended partition does not start at the beginning of the drive (ie. there is some wasted space at the beginning of the drive that I'm guessing is reserved for a primary partition that doesn't exist).
I don't know if this helps any, but try running FDISK, Partition Magic, or some other partitioning program. Delete all the existing partitions & then re-create 1 primary partition. Then reformat.