Well glad to hear that everything is OK now. I'm not a MAC guy by any stretch, but choosing format type ms-dos operating system on the MAC sounds like FAT16 to me. Like I said before, Mac OS X should read and write to FAT 16 and FAT 32, and can only read from, but not write to NTFS volumes. FAT32 should have worked on all the drives and PCs involved. It still would be worth investigating even though for now you have achieved your goal.
Persistence, as on your part with this problem, always pays off.
The trick is to calmly try everything BEFORE you pull all your hair out.
Me, I end up grinding my teeth. I have only nubs left. If you ever figure it out drop me a line. Always curious.
If I had to guess, it's on the MAC side.