Old drive with data no being read by EX2

I just bought this drive. Using it to replace a stand alone single 500gb USB drive. The USB interface of the drive failed, but the disk is still good. I pulled it from the old case. I set up my new EX2 in JBOD mode and then pulled drive 2, replacing it with the drive from the old unit. The idea was I would copy the old contents to the new drive in bay 1, then replace the new drive into bay 2.

Not working. On start up, the drive spins up, and Disk Status shows the drive on-line. However, the front panel LED is lit steady red and I can not make a shared drive from the volume.

Any ideas?

This will not work. Internal drives must be in EXT4 (Linux file system) only.