Just to double check,
1: you are hold c or option/alt key booted from the 10.6 disk that came with your machine
2: you are in Disk Utility and you have selected the drive makers name and disk size on the left
3: you attempt to click Partition tab, click on the big box, select 1 partition, select option: GUID and format OS X exteneded Journaled and it reports "can't unmount disk"
4: you do have no other drives connected to the machine
If that's all true, then you need to quit Disk Utility and use Terminal and try to force unmount the disk
http://macosx.com/forums/mac-os-x-system-mac-software/309784-official-mac-os-x-1 0-6-snow-leopard-thread-faq-33.html
Once the drive is unmounted, then hopefully you should be able to format it in Disk Utility