Forgive me if I'm saying the obvious but in order to format a partition you need to create it first. Formatting unpartitioned space is not possible unless of course the OS decides to simplify your choices and figures out that you want to create a partition and format it afterwards. I am not surprised that windows did not let you format the space but what you could try is to create a partition on the space first. I believe windows calls it volumes now, so "create a simple volume" is what you were looking for. Again, hope you're not offended, it just wasn't clear from your messages that you understood the difference.
Doesn't matter anymore since you did from scratch, glad it worked out.