Turn it on and go into the BIOS and monitor the temps for a few minutes - this is showing typical signs of overheating - this can cause some real issues.
Just a thought.
Rysz.
Try Right Clicking on "My Computer" and then left click on "Manage" and then locate the disk management area - the rest of the disk should appear and you can then partition the drive as required (NTFS would be my recommendation).
What is often a good idea is to buy a caddy separately from the hard drive as the external hdds have 1 year guarantee typically where a standard drive (All that externals use) has normally at least 3 years.
Definitely worth thinking about.