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I suspect that the cause is the partition scheme is set to MBR, when it should be either Apple Partition Map or GUID Partition Table. You can change this from the Partition tab of Disk Utility.
 
Try deleting the existing partition, then re-create it using the GUID or ??? (for PowerPC compatibility - its one of the choices).

Once you do that, you should be able to partition it.
 
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