[dnanian]

It *is* shown in Disk Utility - select the hardware above the volume, and you'll see it at the bottom.

If the drive appears in the startup disk preference pane, it's GUID.

So - it doesn't boot and is internal? What happens when you try? Is it an erase-then-copy or Smart Update?

If you read the User's Guide and System Requirements, they don't say USB can't be used. Rather, it indicates USB won't work on *Power PC* Macs.