360 v4 Backup path: cannot choose my USB HD as a destination

I cannot choose my external H: drive (USB drive) as a backup destination, even though it is seen and recognized as an option by the Backup interface.

 

I can click the box for the external drive, but Norton doesn't allow me to save it as a destination, or use it to back up my files. I get an error message ('Please choose a backup destination') - Well actually the message is in German since that's where I am.

 

As a result, 360v4 backs up to my C Drive, which  defeats the purpose of saving my data against a HD crash on my PC.

 

This is a BUG pure and simple. 

 

Windows XP SP2, all updates to Windows and to Norton 260v4.  This problem dates back to when I first downloaded and installed the new version, in Feb 2010.

 

I tried chat support. Incredibly, the chat support person asks me to download and run an .exe file which as far as I can tell from the URL path, is not  even on the symantec server!

 

What do I do?  Except give up on this Backup product?  It was always slow and difficult to use anyway.