Is anyone out there using an elements 2TB drive with their ‘live’ box ?
Yes, I’ve been using the Live with such a drive for a few months and it worked without any problems (just switched to the new Live “Streaming Media Player” and the drive still works fine). I’m running Linux here, formatted the drive with an NTFS filesystem, most of the time I just copy the files over the network (only sometimes, when I have to transfer a large amount of data, I carry the drive over to my main Linux box and copy via USB - this is significantly faster but also more work).
I recently tried it & after copying about 750GB to the drive it died - comes up with i/o error when I try to re-initialise it using the hd manager in win7.
This sounds like you just had bad luck with your drive (although it’s annoying, such things can happen), and shouldn’t have anything to do with your Live. Get a replacement drive and you should be fine.