thehorse,
Thanks for posting your comments and the link. I was having the exact same problem -- the computer would not recognize the external drive at all after it had worked before and it works on my other computer. It had worked for four or five months. And the light was blinking.
It was the power cord. I changed the power cord, to one from an older 160 GB Maxtor external drive, and now the One Touch III drive works fine. Amazing. I'd spent four or five hours trying to figure it out. It was the faulty or spent power cord.
My drive would run with the old one, but was a little noisier and the computer did not see it. I hope this works for you too.
Thanks!