Well after a long weekend of playing around with this I have discovered that I am able to install XP pro (32bit), Vista Ultimate (32-bit) but Windows 7 Home Premium (64bit) will not install.
I am just going to return this drive and get a small raptor or something. The whole idea was to make life easy for me if I ever needed to re-install my OS.
These drives are obviously not ready for prime time.
Maybe next year...?