Disk Utility Can't Format Drive

My Dad just bought a brand new 1TB Fantom external hard drive for his iMac. But Disk Utility cant erase or format the drive as a Mac format volume. I keep getting this error:
Volume Erase failed
Volume Erase failed with the error:
The underlying task reported failure on exit.
SOMEHOW I did get it to change from a MS-DOS format to a Mac OS X (Journaled) but I still keep getting errors when I try to Verify or Erase the drive!
Got this error when I tried to Verify the drive: Error: Filesystem verify or repair failed.
And when I go to format the drive I get this wheel and the spinning blue candy-cane bar, and the operation never completes:
"......partition size not a multiple of 4K"
When I goto the company web site I get this error message:
http://www.fantomdrives.com/
ACCESS FORBIDDEN
Access denied. Please click on the back button to return to the former page.
Anyone know why Disk Utility cannot erase or even verify this drive???
Never had so much trouble formating a drive in my life...
Jeff

The underlying task reported failure on exit.
The above is not a good sign. And yes it's very odd that TM Utility was able to get the job done but not Disk Utility (since they address formatting drives in a very similar way). When you look at the drive in Disk Utility, is it reporting good S.M.A.R.T. status? Before seeing your post about using TM to fix the issue, I was going to suggest trying to erase and/or format the drive using a 2nd computer to see the results. I would run tests with DU on the drive and any other drive utility programs you may have (Techtools Pro perhaps) to see what the results are.

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