Just underneath the partition name, click on the drop-down menu that currently says "MS DOS File System" and select "Mac OS Journaled(Extended)" from the list.
I think that when you do that, you may see the "options" button that we've been describing.
I did this from my Macbook Pro, but disk utility in 10.4 should be "close enough."
Do you have enough disc images!
----------
Right here go's guys here are pictures of disk Ute's screen on my G5.
You can see that i don't have any options button at all
Do what bunnspecial said, and you might want to try a single partition as well.