UDF is Universal Disk Format (UDF), used for Optical Media format (e.g CDs)
no need to worry about it, nothing u can do to change its format to FAT32 or NTFS crap
read more about UDF here: http://en.wikipedia.org/wiki/Universal_Disk_Format

about the unallocated disk, how many physical HDD did u have?
the screen shows as 2 physical HDD attached to the PC, and just C & D slice is active
you may need to check the other HDD perhaps it's not formatted yet

correct me if im wrong