I have the exact same problem with two new 2tb WD20EARS on Windows Server 2003.
At first, I plugged them into the mainboard as-is. They would partition but not format.
I then plugged them into my Adaptec 2610SA. They would partition but not format.
I tried DOS formatting, GPT, dynamic disks, extended partition, etc etc… all with the same results.
I tried using the jumpers…
I put them in my XP box, with or without jumpers, they formatted with no problems. I ran the align utility and they were fine. Put them back into 2003, and they appeared to be OK… but I couldn’t copy more than 1tb of data to them.
I deleted the partitions to start over, but same problem. I can create and format a 1tb partition, but then no other partitions afterwards.
The DataLifeGuard app won’t test either of them, spitting back a data cable error… which i’ve changed with brand new ones, and even reused a known working cable.
Weird thing… a third disk I bought at the same time for a friend worked just fine when I installed it in his 2003 server box. Full size, formatted no problems.
I have updated my BIOS, but I don’t think that would be an issue, as my RAID card showed the same symptoms, and it supports 2tb drives, and I have 4x1tb’s in a 2tb and 1tb partition already, so I know Windows Server is fine with 2tb partitions.
There is no way I could have two DOA drives, right? That would be crazy.