New here.
Came here from google, b/c I have a similar situation.
Bought the iomega eGo 1TB.
Downloaded the utility and removed the 'virtual cd'.
Tried installing -
1) Linux Mint, no go
2) Kubuntu, also no go
Everything when fine until 'Grub' installation - error complain about 4096 sector size.
3) Wonder if you found an answer to this? Will continue to google and update when find more info.