Found a couple of discussions on your error message:
https://forums.macrumors.com/threads/1210385/
https://discussions.apple.com/thread/3226425?start=0&tstart=0
I'm assuming this is an external drive plugged into your computer by USB or Firewire? One person claims it means the drive is bad and you can check the SMART status in Disk Utility. Other people from the Apple thread recommend the issue may be with Lion and to try running Disk Utility from the restore partition.
If you're not running Lion, guess it wouldn't hurt to try running Disk Utility from the install disk to format that drive, instead of from your computer.