Sorry, I don't have the answer, but I have a similar problem. See my posting "External hard drive problem" on 29th march.
Mine's a new drive which I've dumped some data onto to see if it works, so I can play around without worrying if I loose the data.
On my laptop (windows 2000) it's formatted (NTFS). I connect it to my desktop (XP home) and it doesn't work. It assigns a drive letter to it, but tells me it's not formatted. I launch the formatting, but it fails.
Since my posting I've partitioned the drive and formatted part of it FAT32, and it works fine.
This probably doesn't help you, but at least you got an answer to your posting!
