System won't install new External HD: error message "resource busy"

I recently purchased a new Simpletech 1TB external HD to be run on a G5 IMac with the Leopard operating system. In order to set this system up to run on a MAC, the manual instructs me to open the disk utility, select the External HD, select Mac OS Extended for the format, click erase, confirm erase and wait for the HD to reformat. Whenever I try this, I get the following error Message:
Disk erase failed
Disk erase failed with the error:
Resource busy
I contacted Simpletech but the tech-rep had never heard of this issue. Any suggestions

After battling this problem for hours and searching infinite useless internet forums, I was able to develop a workaround at least. If you cannot get a drive to work using the 'Disk Utility" app, Try this:
WARNING: All data on disk will be lost!!!
1) connect any external drive you are having issues with
2) open a terminal (apps>utilities>terminal)
3) 'diskutil list' to identify the drive name (should be something like /dev/diskX) - you can recognize it by the size, hopefully
4) 'diskutil eraseVolume "MS-DOS FAT32" "NEWDISK" /dev/diskX'
and that should work. I tried it first with all versions of "HFS" types and it kept failing. My guess is that some hard drives interfaced thru firewire just cannot support MAC filesystems ??? At least with my case, it is true.
Hope this helps.

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