Cannot Set a password on My Passport Essential 1TB

I cannot set a password. I check HELP in Smartware (1.6.4) and it tells me to go to HOME tab and select MY PASSPORT by left-clicking to highlight. It does not highlight the Passport - both the Passport and my PC are highlighted. 

Selecting SETTINGS does not show a SET UP DRIVE tab - and there is no Passport icon, although it does appear on the HOME screen:

Here is what I see on SETTINGS:

What am I doing wrong? I cannot select PASSPORT on the HOME screen, although the computer does see and use the Passport.

The drive setup option on smartware should become available if you click once on the passport icon on the Home tab. If that doesn’t work check if you have the latest smartware version. 

I repeat:

Clicking on the Home Screen Passport icon simply shows BOTH icons (MY PC and PASSPORT) highlighted in Blue.

 The SETUP option does NOT become available.

WD Smartware version is 1.6.4, and drive firmware is up to date.

Update adobe flash player, java and .Net framework

I have the same problem. I use Java (build 1.7.0_01-b08), Adobe flash Player 11 and I have installed dotNetFx40_Full_x86_x64, but I still can’t see my external My Book Studio WDBCPZ0030HAL (3TB) in tab Settings in WD SmartWare. I tried to uninstal and instal driver again, but I still have the same problem.

I need help

According to this page your drive does not support wd smartware, use time machine instead.

http://support.wdc.com/product/download.asp?groupid=129&lang=en

I mean microsoft back up software or any third party software.