I pulled up the backup and restore screen (via CP). I managed the space by pulling up the ONE backup from 3/12/2013 and deleted that backup. So, no backups or System Images on my E drive.
I then proceeded to backup my iTunes folder tree (on D drive) to E. It chugged away. During this time, it seems the Control Panel icon on the taskbar is "Frozen" in that you can't pull up the REST of the control panel. I wanted to look at Device Manager during the Backup so I searched on Device Manager and pulled it up via that route. All good.
Well, after the Backup completed (successfully), when I try to pull up Device Manager now, it hangs indefinitely. I tried other CP applets and they work, just not Device Manager.
I give up and restart the machine. It hangs forever and the disk light comes on for a few seconds, then off for a few seconds, etc. Finally a popup window tells me E:\Backup directory is CORRUPT and can't be read. So, now I can't get into Disk Management or Device Manager. I assume something is hosed enough that it can't be fixed. Should I simply reformat this drive (nothing on there but this backup)? How should I do it if I can't get to Disk Management or CMD prompt to pull up E drive (it hangs).