System Image Backup looks for drive

Hi,
I am trying to run a system image file back upon my sony z5 with windows 7 Pro. I have connected my ipod (as an external drive) and it appears in the drop down menu as an available HDD to make the back up to. It is accepted and the back up begins as normal. Shortly after I get a window asking me to label and insert a media larger than 1GB. I click Ok because the ipod is already connected. The back up seems to then roll back a little and starts off again. However, after a few minutes, the dialogue box "label a blank media and insert it into the drive "E" reappears . Drive E is where the ipod is connected and there is adequate space available for the back up. What am I doing wrong?

Just checked its properties and it is FAT 32. Should I reformat it to NTFS via windows and, if I do, will it still connect to itunes to tranfer my music files?
Thanks

I would not suggest using an iPod as your system backup.

To answer the question, yes it should be changed to NTFS but I am NOT sure if it will still connect to iTunes, if it even works still. Consider that the OS on the iPod needs to be able to read the files, it most likely will not read NTFS.

You are right; wouldnt work. iPod went in to recovery mode so had to do a restore. It is working again now but I need to get a small SSD for back up. Many thanks for the help.

Why don't you simply buy a relatively cheap USB connected backup HDD ($100 or less ~ 60pound)
iPods & SSDs are not the way to go for file/folder or image backup.