New
#61
I believe the casing is playing a part in this issue. To try to draw an analogy (maybe a bad one) it's kinda, sorta like the electrical system of a car. You know you've got battery power because the headlights come on. But the thing won't start. No matter what you do with the battery, no matter how many wires you change out, it just won't start. Why? Because the starter shorted out.
Applying that logic to the casing, the USB cable is providing power from the computer to the LED because the LED lights up. But at some point beyond the LED, something in the circuitry is messed up and not allowing the drive to be recognized or accessed. A new enclosure might solve the problem providing the hard drive itself wasn't compromised in some way.