The drive needs to be repartitioned, not just formatted. In disk utility, click the disk (not the volume), then partition, then change 'current scheme' to 1-partition (or more), and partition the disk. Make sure you click options and choose 'GUID', then set the format to Mac OSX Extended (Journaled). I avoid case-sensitive volumes because they tend to break applications.
Of course, that has to be done from a non-PGP installed OS instance. PGP removed that capability a long time ago. I have had luck mounting drives from a windows virtual machine, then following instructions (google for them) to 'Remove GPT Protected Partition' using the command line. I never have found a way around it on OSX without booting my install DVD.
Depending on your threat model, it might be a moot point on Wednesday (if rumors are right).