Formatting Your USB Drive:

For formatting a USB flash drive, download PEtoUSB 3.0.
For formatting a USB hard drive, use windows format utility, make sure you set the partition as active.
If you are using Fat32 you will need to edit the pe2usb.cmd file as it does not support Fat32 drives. All you have to do is comment out the section that checks the file system on the drive.
Or you can download one I have already edited, just extract it to the same folder where the pe2usb.cmd is. pe2usb-f32.zip
You will have to format the USB Hard Drive using the Windows Disk Manager and set it active.