I Just thought of something for you. A friend of mine brought his power book over for me to transfer a files I had stored in one of my external drives. My drive icon appeared on his desktop but I couldn't drag n drop the file over to his computer. It just didn't work? Now all my computers are running the lastest Tiger updates, 10.4.10 and the powerbook was running 10.4 only.
I ran repair permissions on his computer, it corrected a few items but still it didn't work so I used his Tiger disk to do a new install with the custom option "save previous system folder" and installed whole new system on the powerbook. Than I installed all the software updates to 10.4.10. and restart the powerbook.
I ran repair permissions and attached my firewire drive to the powerbook. I drag n dropped all the files from my drive to his without any problems.
PS: When you are formating the external drive using Disk Utility, make sure you format in "Mac OS Extended (Journaled) and click on the Partition section using 1 partition or several partitions. Then click partition to format.