I had the same problem with my Pogoplug when I first got it. It seemed like it took forever (4 days+) to transcode 119 gb of data and still gave me the error message. After multiple depots from support I finally decided to turn off the Pogoplug and remove the external drive. Then hooked it up directly to the computer and checked it for errors, there were none. I then transferred the data to my computer reformatted the drive reattached it to the Pogo making sure al transcoding was turned off and powered it back up. Worked fine after no error message, if the Pogo is busy transcoding by saying drive is unavailable but visible you won't be able to make any setting changes until it is done. I think it's really underpowered to do the transcoding, I would transcode it on your comouter then upload to the Pogo making sure transcoding is off, just make sure to transcode it on your computer to a format your device will play and them pick the option to watch original instead of optimize when it comes time to view on your device.