Formatting WD 1TB drive

I bought a 1TB Western Digital hard drive the other day, and it came preformatted with FAT32. Since I will only be using this on OS X machines, I wanted to reformat it with HFS instead, but had problems doing this with Disk Utility. Then I came across a thread suggesting to change the partition type to GUID, and everything worked fine. This can be done in Disk Utility as the screenshot below show.