I've got the same external hard disk and the same problems. I've tried out FAT32 and FAT16 and none of them worked. I tried out several variations of FAT and NTFS. My HD is always recognized as USB Webcam. What kind of sh*t is that!
I though Disk Format has nothing to with recognizing an USB Mass Storage Device. BTW the Philips HD is recognized by any PC i tested it with.
I was hopeless and requested ASUS to help me with this issue. But they never responded and erased my help request after 3 weeks !!! That's what I call support!
Anyone can give me a hint how are chances to get the disk running with Oleg's Firmware?