You can oil those to get rid of the noise, it will probably also solve your format problem. The bearing just needs some lubrication. Of course, you want to lubricate them very (very) sparingly to avoid splatter on your disks! :-o
I've tried dry grease in the past but it seems to scatter all over the bloody drive and screw it all up along with disks so don't use that lol. (3in1 oil works though)