I honestly didn't change that much stuff with the 1.1 patch. There's no reason why you shouldn't be able to format multiple partitions at once with it. To memory, it's the black button that changes function... Or was it the white one? I dunno. The readme file covers all that stuff. All I know is that if it isn't cluster related then I didn't touch it.
I found that changing the system resolution made a difference to how well XBP fits my screen. I have to use 4:3 or it's all stretched out of shape. Mind you, I have a 4:3 TV, of course.
Statements such as "It would not do the formatting" completely fail to convey what happened instead.
I'm afraid I'm uncertain as to how to find out about the amperage stuff you're asking about. On the drive is written "0.7A, 0.5A" - I hope that's what you mean. The model is HD753LJ.
I compared this to an IDE Maxtor I used to run in the X-Box (which of course ran just fine), and that's got 0.74A and 1.5A on it. It's in my PC now (with two cooling fans piggybacked onto it's molex). 6L250R0 (a noisy and slow drive, I don't recommend it).
I'm also not sure as to what an inline cap is - Some sort of electrical filtering device best I can make out? Sort of like the capacitors used to smooth an AC wave into DC?
The way I figure it if insufficient juice is the problem, then if you were to externally power the drive from a secondary PSU prior to starting the console it should work. I suppose that'd be the easiest way to test the theory?