Can’t Create Bootable External Media – EasyBCD 2.0.2

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I wanted to “Create Bootable External Media”. I have a 4GB USB flash drive I’m trying to use. I go to Bootloader Setup, then under Create Bootable External Media and select the USB drive, then click - Install BCD. First of all the USB flash drive has to be formatted FAT16 or it won’t even try to work (I figured that much out), but even then it doesn’t work right. It says EasyBCD is applying the selected action… then says it was created successfully and asks Would you like to automatically load the newly-created BCD store in EasyBCD now. I select Yes and it gives an error – Unable to obtain access to the BCD…

Then when I try to look at the USB drive via Windows Explorer it says it’s not formatted and needs to be formatted before I can use it. I can format it again and read/write to it fine but as soon as I try to install BCD on it again it losses it’s format again every time. What’s up with that?
 
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