Its a bit hard for me to see;-)
Sorry but I don't have an old G4 to give an exact instruction, and they have changed Disk Utility.
One entry is the Drive and within that is the Partition, if you've selected the Partition i.e. the one named Macintosh HD, then try the Drive which has the name "like" 1 TB ST31000528ASQ Media. See if that helps.
Also the Format needs to be OS X.
You could also try re-partitioning it and see if that enables the Security Settings...
If its older than that then check the Menus for more options.
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