OK I was a bit premature.
I done the test on my laptop. Cannot get to the office pc at the moment. Calibre has the USB folder in its library and I can switch from USB folder to laptop and visa versa.
But if I don't have the USB plugged in and I select the USB folder in calibre on the laptop it reconizes that its not available and deletes it. Therefore I cannot see it even though there are books in the USB folder when I check.
I found the solution... (I will post this for other people who are stuck)
Click on "Choose calibre library to work with"
In "New Location" select the USB folder that was deleted
Select "Move current library to new location"
The USB folder is now available and selectable.
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