If the Drive is recognized, but states NO for Karaoke, then your problem is that you have and Older version of Microstudio installed. You need to upgrade to the newer version to fix this. Here is how to get in your store account, if you have purchased within 1 year the software will be there, if not you will need to purchase the upgrade.
Here is the FAQ on the Store Account:
http://www.mtu.com/support/faq/faq-website.htm