I had the same problem (no encryption options, partition button greyed out) and also solved it. In my case, the problem was that my new drive (La Cie Rugged Thunderbolt from the Apple Store) came with a master boot record partition map and not GUID. If a drive is not GUID, neither the partition button nor the encryption settings are available in the graphical Disk Utility, which is why we're forced to use the command-line diskutil to partition first.
In the Terminal app, I used:
diskutil list
to find out that my new drive was mapped to /dev/disk2. Then I used the following:
diskutil partitionDisk /dev/disk2 GPT JHFS+ YourPartitionName 0b
...to partition the disk using a GUID partition map (GPT is the argument that specifies GUID) and Journaled HFS+.
This ran successfully and the encryption and partition options became available in Disk Utility.
This post has a good overview of how the command's arguments work so you can be sure of what you're getting:
http://www.theinstructional.com/guides/disk-management-from-the-command-line-par t-2
Hope this helps others not waste as much time as I did trying to make this work.