Not knowing what version of OS X you are running:
The following external hard drives should not be bootable on Intel-based Mac computers systems through FireWire (1394a/b):
- All My Book (+SmartWare)
- All My Passport (+SmartWare)
The external hard drive must contain a Mac OS Extended (HFS+) partition with GUID for Intel-based computers or Apple Partition Map on PowerPC-based computers. For directions on how to partition and format an external hard drive, please follow the directions below:
Ensure that the external hard drive is connected to the computer and powered on. Open the main drive (the drive that contains the operating system).
Open the Applications folder.
Open the Utilities folder.
Open the Disk Utility application.
The drives are displayed on the left side of the window. Click on the drive (the upper listing with the numerical capacity) that you wish to partition.
Once the drive is selected click on Partition tab.
Click on the Options button to select the partitioning scheme.
Click on GUID for Intel-based computers or Apple Partition Map for PowerPC-based ones and then click on the OK button.
You will see several options for setting up the drive. Once you have selected the number of partitions, the format type you want (Mac OS Extended), and a volume label, click the Apply button. Click the Partition button to confirm your selection and begin the partition operation.
- Following the completion of this process, the drive will appear on the desktop. It is now ready for installing a bootable operating system on it.
Source:
http://wdc.custhelp.com/app/answers/detail/a_id/1787
Using a WD drive with Time Machine running Lion:
http://wdc.custhelp.com/app/answers/detail/a_id/1694/related/1/session/L2F2LzEvd GltZS8xMzE4NDM1NTg0L3NpZC91WDcxWW5Haw%3D%3D