Can't format using PartitionMagic

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I have added a new 400 GB drive as a slave to my existing XP MC 2005
OS. I would like to make this second disk to store Ghost images of
the master disk (make it FAT32). First I can't even create a
partition on the new disk. The options in PartitionMagic are grayed
out. The PM complains with error...

The selected disk contains one or more partitions which cannot be
moved. To complete the task use the Operations menu rather than a
wizard.

I formated the disk to NTFS (via Disk Management in XP) to see if PM
will then recognize the disk. That didn't help. I also tried this by
booting off via PM CD and no luck there. PM reports that the new disk
is a dynamic disk. Do I have to something different because it is XP
MC? I used PM many times before starting with version 4.0. The
support at Symantec is really bad and can't get any search result that
I need to resolve this issue. TIA.
.



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