In case you still have problems, and/or for future reference: Both Western Digital and Maxtor have HD software - Seagate and others might as well. Maxtor's is fairly good, I don't remember about WestDig. Western Digital supposedly has a disk analyzer program you can run. I believe some of the manufacturer software downloads are able to format and partition own-brand drives (possibly other brand as well). I think the software Maxtor bundles with its HDs can format in both FAT32 and NTFS. If you are actually doing this as a business, you may want to got major drive manufacturers and see what utility floppies (and CDs) you can create.
Some of this software has the advantage of fitting on a floppy AND being bootable.