Thanks for the input. I have an older drive too, but it has bad sectors even though it was just a few months old when they popped up; kept crashing my machine. Bought 3 new drives, but as you said they aren't recognized at all with SmartWare, and the WD backup software doesn't work at all. Stunning to me that a company releases a product like this and can't deal with such a basic issue so many people are having.
I am looking at alternative software, but most of them do the full/differential/incremental backup, and not file by file. I did find a few that do file by file but only daily, which might be my fallback.
Very disappointed in WD, given that I have about 15 of their drives (including internals).