Cant format 1tb to Fat32

I just purchased a “My Passport 1 T Essential SE” WD outboard HDD and I cant reformat it to FAT32. I downloaded the program from WD but it gives  the following error: Drive size is too small or not supported (WD0740USBDevice)

I want to use this with my PS3 but until I can convert it to Fat 32 it is useless to me.

Dont ya just love new gadgets! What would I do with all my free time if not learning about how to use these conveniences?

You may be using an old software from WD, you can reformat the drive from a Mac, or from Windows using third party software, like Acronis WD Edition: