Disk Utility Not Formatting External USB Drive

Question

Hello,
I recently upgraded to Leopard.  Around this same time, my company purchased two, 1 Terabyte USB External drives for my coworker and I in the graphics/web development department.  They arrived this morning and we were very excited.
My problem is that I cannot get Disk Utility to erase/format the new, external USB TB drive for use with my MBP.  Disk Utility fails almost immediately with the following message:
"*Disk Erase Failed*
Disk Erase failed with the error:
File system formatter failed."
The options I'm choosing for the Erase are:
Volume Format: MAC OS EXTENDED  (i've even tried the 'journaled' version too)
Name: TB
As soon as I hit 'Erase' I get the error message I listed above.  The volume never mounts on my desktop and does not exist.  I can see the drive itself in the System Profiler, so my Mac sees it, it just can't format it!  I've also made sure all my permissions were repaired, so I'm just a little confused as to why this simple task keeps failing?
Is there some additional, esoteric step that I'm missing?
My coworker was able to get his disk to work because he did NOT have Time Machine turned on yet.  When he connected his new TB drive, Time Machine asked him to format/initialize the disk and he of course said "ok."  I had Time Machine set to use my OLD external USB drive and it's been working great. As of this writing, my coworker is a happy camper. I, however, am not.  I'm not blaming Time Machine, just noting the differences between my coworker's experience and my own. Since the volume is not currently mounted on my machine, I can't format my disk the same way as my coworker has done using Time Machine, since Time Machine doesn't see the volume.
My fear is that the manufacturer (whom I've also contacted and am awaiting their response) will throw this back to a software problem....and the folks on the forum here will point their fingers and say 'hardware problem.'  Ah, the eternal struggle.....who to blame?
Any help or additional troubleshooting tips are greatly appreciated.

Answer 1

This is the best, and only, way to format an external hard drive, which is courtesy of Kappy.
Extended Hard Drive Preparation
1. Open Disk Utility in your Utilities folder. If you need to reformat your startup volume, then you must boot from your OS X Installer Disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Installer menu (Utilities menu for Tiger or Leopard.)
2. After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Note the SMART status of the drive in DU's status area. If it does not say "Verified" then the drive is failing or has failed and will need replacing. SMART info will not be reported on external drives. Otherwise, click on the Partition tab in the DU main window.
3. Click on the Options button, set the partition scheme to GUID (only required for Intel Macs) then click on the OK button. Set the number of partitions from the dropdown menu (use 1 partition unless you wish to make more.) Set the format type to Mac OS Extended (Journaled.) Click on the Partition button and wait until the volume(s) mount on the Desktop.
4. Select the volume you just created (this is the sub-entry under the drive entry) from the left side list. Click on the Erase tab in the DU main window.
5. Set the format type to Mac OS Extended (Journaled.) Click on the Options button, check the button for Zero Data and click on OK to return to the Erase window.
6. Click on the Erase button. The format process will take 30 minutes to an hour or more depending upon the drive size.
Steps 4-6 are optional but should be used on a drive that has never been formatted before, if the format type is not Mac OS Extended, if the partition scheme has been changed, or if a different operating system (not OS X) has been installed on the drive.