I tried unmounting, ran Disk Utility, FAILED! I unpluged and restarted, FAILED! I can read the drive and move item but, TM fails due to to the READ permissions.
Is this an external USB drive? Is it formatted as Apple Extended Format (Journalled)? What are the exact messages you are getting from Disk Utility? Can you post a screen shot?
Unless you have any data on it, go ahead a initialize the drive. One of the first troubleshooting steps to rule out. Looks from your image there may be an issue with it.