Incorrect GB space free amount and space used. Doesnt change as I delete more files.

SOURCE: 221 GB Free on MyBook - Error states not enough space for backup

Is the drive formatted as FAT32?

If so, and your backup is more than 4GB, it will not be able to write the file to the drive.

Open a Command Prompt (Start | Run | CMD) and at the prompt type:
CONVERT V: /FS:NTFS /X
Where V: is the drive letter of your My Book.

That will convert it to NTFS and it will be able to handle files larger than 4GB.

SOURCE: free space?

I tried to format it; it will not allow it. 

SOURCE: WD3200ME-01 Passport size diskspace problem

To format the drive to allow files larger then 4GB: Open up My Computer, Right click on the Western Digital Drive. Select Format from the list. Under file System, select NTFS. Under format options Check Quick Format. Click Start to format.

Warning! Formatting will delete all data and files on the drive. Make sure to transfer all your files to another drive before preforming a format!

SOURCE: Write Protection on Hard Drive

I think your machine could be affected with a virus. Most of the viruses do that to block you to access the hard disk or any external media. Try this good antivirus that i have come across the net its a demo version that works for 30 days but it will do you good.

Here is the download link:
http://download4.quickheal.com/builds/eval2009/tsntevl.exe

You can also visit the website at www.quickheal.co.ke

And the forums at
http://support.instaconnect.co.ke/forum

Thanks

SOURCE: Accidentally deleted files from My Book - possible to recover?

These two articles recover WD Mac and restore Trash Mac may worth for a glance. But the first thing you need to take care is do not put more items to your WD drive where those stuff originally located. Best regards.