If your using Kickstart 1.3 then you need to place a copy of the FastFileSystem for KS1.3 into the Rigid Disk Block on the harddrive itself.
This should then allow you to format upto 1Gigabyte in harddrive partition space, with a drive capacity limit of 2gigabytes.
At the moment, with your 21meg harddrive format problem, seems like your defaulting to KS1.2 harddrive limitations.
The FastFileSystem should be on your workbench 1.3 disk, check for it under the L: directory.
Use this partition software, more useful under KS1.3 than the old hdpreptools supplied by commodore :-)
http://www.aminet.net/package.php?package=disk/misc/hdinst.lhaenjoy
