I created a case for my problem at the Seagate Support website and got a prompt email in return from Tech Support which I'm pasting below:
"Thank you for contacting Seagate.
Sorry to hear you are having problems with your new drive.
The drive is not affected by any firmware issue. I verified it by the serial number you supplied. Please try the following steps to format/partition the drive.
Under partition tab do this:
Volume Scheme: 1 partition, click options, choose GUID, click ok, change format to Mac OS Extended, change the name to whatever, click Partition or Apply./
Specifically, choose the GUID.
Don't choose Apple Partition Map.
If you still get an error or it fails try disk repair and see if you also get an error.
If you do, then I would suggest returning the drive. You can complete a warranty return from the following link.
http://www.seagate.com/www/en-us/support/warranty%26_returnsassistance
Select "Return a drive as Guest User"."
I followed the instructions to a T and was able to format the drive but upon installing OSX, got a Time Remaining of 11 hours, 58 minutes! I quit the install and tried once again but got an Install Failed this time. I am now going to return the drive and try my luck with a new drive.