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Creating backup media

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I am trying to create a startup disk on a USB key. But the key dies not appear in the list of media. It's an 8Gb SanDisk Cruzer key and I have tried formatting it in both FAT32 and NTFS. The key is correctly recognized by W7, by Acronis DD11 and also by Acronis True Image 2013 in the disk backup window, but in the media builder window it doesn't show up

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I just solved my problem although I don't know why. What I did was to insert another USB key that had data on it. The key was recognized and appeared in the list. I selected the media, I then removed the key and replaced it with the Cruzer key. I pressed next to proceed with the backup and it worked! I tested the key and it works well allowing me to boot from it. So maybe it was something with the SanDisk Cruzer key, perhaps related to the fact it came with some encryption software for backing up data. I had erased all fields and also formatted the key so I expected it to work as a normal blank key? Anyway, if anybody encounters a similar problem maybe this workaround will help.

I have used True Image 2013 for about a year (and used every prior edition starting with 2009) mostly without problems. Now I have a big one, and cannot chase down the cause. I have set up a File Backup (Full) of Documents & Settings, with detailed settings same as typical for earlier backups. The destination is folder My Backups in an external HD with more than 1 Tb of available space.

In July-Aug 2013, I created three backup files of 4 Gb each, where source files totaled about 260Gb.
In Oct 2013, I re-set my File Backup (Full) of Docs & Settings, with three automatic weekly runs. Each yielded Backups of 4 Gb, with similar input, about 270 Gb.

I have scoured the settings over and over again, but cannot find what I've done wrong. Does anyone have any ideas.

Just remembered something that may be a clue: I moved from Windows XP Pro to Windows7 -64bit last spring. As well as I can recall, TI was functioning correctly until that change.