Only for the record, here is some discussion on the various related Registry settings (some of which are used in some WinFE versions) and other related stuff/tools
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Also, JFYI, Dynamic disks (rare as they may be in real world) seemingly behave slightly differently (though this is related to the opposite issue, having a volume read only)
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jaclaz
My standard approach to recalcitrant devices is to connect the device to a Linux machine, unmount if it happens to automount, then simply DD /dev/zero to the drive /dev/sd{letter} no number as you want to target the device and not the partition.
You don't even need to spend time zeroing the whole drive, a few seconds is sufficient to destroy the file system enough that it will be seen as an unallocated device that can be reused as desired.