If you have followed the formatting instructions and the software is not recognising the USB.
There are a few things you can try: first of all we mainly advise using USB memory sticks up to 16GB however if you select customise when initially formatting the USB stick it will let you partition the USB so if using a very large stick you can tell the Xbox 360 to only format a section of it.
If running windows vista right click the program icon and select Run as Administrator.
We also suggest keeping the USB stick just for use with the software and not to put anything else on it.
If running Windows 8 or Windows 10 close the software and open the USB in Windows, can you see a folder called Content? If not Open Folder Options by clicking the Start button (or Picture of the Start button), then click Control Panel, click Appearance and Personalization, and then click Folder Options. Click the View tab. Under Advanced settings, click Show hidden files, folders, and drives, and then click OK.
now right click on content and make sure the hidden folder isn't ticked then close and re open the software and when you open the software right click the icon and select run as administrator
it should now be recognised. This still requires there to be a dummy profile and safe on the USB as previously instructed.