What file system arrangement did you format it with? For example, NTFS or FAT? That could be a reason why it is giving you that error.
You might want to try re-formatting it with the NTFS file system. To do this, go into Control Panel > Administrative Tools > Computer Management > Disk Management.
Find your external HD and right-click it and click format.
If that doesn't work, and you're sure you've tried other things it could be as well, then I'd say try to send it back for a replacement, if possible.