Hello.
Partition Magic uses some custom routines. So, that may be your problem.
Try using the routines built-into Windows XP to repartition and reformat the drive.
You should be able to right-click on the drive, and choose format. Then, choose your partition type and format.
There is also a built-in utility somewhere on the machine. I think it's in the System Utilities folder in the Start Menu. You'll have to look through the submenus in the Start Menu to find it. I'm not in-front of a Windows machine to look for you.
O.K., since I'm not at a PC at the moment, I looked it up on the Internet.
You should be able to remove partitions completely and re-create them using the tool that comes with Windows XP here:
My computer > manage > disk management to create and format the partitions you want.
I would use Windows XP's built-in routines to remove all partitions completely. Then, save that configuration. Re-start, then go back into the utility, and make sure that there are still no partitions.
Then, see if it will work on the Mac.
If not, then go back into the same Utility, and reformat the drive as FAT32. Then, see if it works.
I've had my share of problems with Partition Magic on PC's creating non-standard partitions that couldn't be properly removed (even with Partition Magic). So, I would do everything I could without Partition Magic just to make sure it isn't the problem.
The one other thing you might try, is downloading the trial version of MacDrive:
http://www.mediafour.com/products/macdrive6/
The 15-day trial is free, and it should be long enough to get this working.
With MacDrive, you can read, write, and even create Macintosh compatible disks on the PC.
So, if nothing else works, try using the trial version to setup the drive as a Macintosh drive. Then, take it to the Mac and see if you can reformat it and do what you want.
I hope this helps.