360 is being dumb

Hey folks, how y'all been? I'm having an issue with a 360, it seems to think my external hdd is a PC and not just a storage device. It wants me to activate it or some such gibberish. I can't find anything through my meager google-fu so I figured I'd ask folks who are better with this stuff than I am

the external drive is a Seagate model: ST305004XA101-RK. 500 gig.

the 360 is one of the newer 4 gig 360s.

every computer i plug the drive into sees it as 'E:' or (drive letter):Expansion, the 360, though, sees it as 'Magical's Ace' which is my laptop. I use the drive for backups and storage of large files, do ya think it's the backups causing the poor 360's confusion?