Trying to transfer files to new ext HD

Hi,
This should be a no-brainer, but theres a glitch somewhere. iMac G5, w/ a new out of the box Axiom 250G HD. Plugged in via USB 2.0 & ready to use it as the new home for iTunes music files.
So I cant even create a new blank folder in the ext HD, it says it cant be written to. Checking the ext HD in 'get info' I see it is mounted but can only read, not write.
went into disk utilities to verify permissions & none of the 4 buttons were options (verify, repair permissions, etc) all grayed out.
The computer sees the HD but that all, I cant wrtie / transfer files to it.
Any help would be appreciated.
thanks
Duane
iMac G5   Mac OS X (10.4.2)  

Use the Disk Utility to reformat the drive in the Mac OS Extended format, or MS-DOS if you need to use the drive with a PC. Mac OS X cannot write to NTFS disks natively; since there's nothing currently on the drive, it's probably best to reformat it.
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