formatting a new 1TB buffalo USB HD

[Appletise]

got a new 1 TB buffalo USB HD, is it possible to format it EX FAT, so compatible with as many machines as possible and have a partition thats Mac OSExtended (Journaled)*format, to pw protect files? If not l'd have it as EX FAT or Mac OSExtended (Journaled)*format, together with a disk image, to pw protect files, with an open space (obviously a 1 TB limit) which dynamically adjusts, increasing or decreasing capacity usage depending on files l add on or subtract to the disk image.
is it possible to do a disk image on the buffalo HD without having to first place it on my mac then transferring it to the buffalo HD?
Please detail, thanks in advance

 

[Weaselboy]

Sure... you can use Disk Utility to make two partitions like you mentioned. Then when you make the encrypted disk image, just point Disk Util to the external as the destination when you create the image.