I had the issue with the "drive not formatted" (internal memory) as well, can't really tell you how I solved it, I just formatted it again and again until it finally worked...this is a bit of a tricky one, but I got it working, so I guess you will too.
I remember that the trick is to format and mount the drive in the right order, but since I got it working by Trial and error I can't tell you how.
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