I just purchased a WD 2TB external USB drive and when I attach, the system says can't install driver. I am running W7 x32 on a Dell E510. I attached the drive to a newer PC HP A6710T W7 x32 and it recognized it perfectly. I partitioned the drive to have 2 partitions below 1TB and it attached to the E510. I couldn't find any BIOS changes, on the E510, that would affect the 2TB drive. Anybody have any ideas? I can live with the 2 partitions but would like to get to partition so that I don't have to manage the space.
Try updating the BIOS with the latest version form Dell. It normally helps with recognizing large HDD volumes.