Comment 1 for bug 501057

I can confirm that the format button has a major issue. It is always available, even when no disks are selected. (See attached pic)

For the bug concerning lack of verbose feedback when formatting a drive (and nothing happens) please see Bug #457737. I suggest you subscibe, mark it as affecting you, and optionally comment.

To answer your question concerning permissions, I think you need to be part of the plugdev and/or admin groups in Karmic (new with devicekit-disks).