I searched the forums here and noticed many users having the same problem formatting their drive as I was.
I solved the problem.
Your drive was set to the new system type for windows, I think it's GPT. There's a 200mb EFI partition in there that you can't get rid of. To clean this, do the following:
Run Command as Administrator
select disk ?<enter> ?=disk number the 200mb part is on
**all partitions on the drive will be gone**
Now, create a new primary partition, assign a drive letter, do not format.
Go into WBFS Manager, format will work