What happens when you click "change drive letter and paths"? Will it allow you to even see that when right clicking? Also what color is the bar atop the block showing the disk and what is listed inside the block?
If you can see the disk in the disk management you should be able to format it. Did you create the partition? Right click the disk in Disk Management and create a simple volume. once the volume is created you should be able to format it.
Correct, just delete the volume then format it. As long as there is no data you need from the drive then you're good to go. I apologize I thought you had already attempted this.