You could also try to Write Zeros with DLG (Data Lifeguard Diagnostic). This writes zeros on each block of the hard drive, but your data becomes practically almost impossible to be recovered after it. You could try to format this again it after you've done that. Here's a link for the program (it's free):
http://support.wdc.com/product/download.asp?groupid=810
And here's a link with instructions on how to do that: http://wdc.custhelp.com/app/answers/detail/a_id/1211/
Let me know if this works for you.