Hi, camner.
OSX cannot boot from USB drives, so that's why things don't work when you try to boot from the clone. However, once restored to a drive that does support booting, it'll work.
The slowness is because while the drive itself is USB2.0, your computer is USB 1.1, so things are running at 1.1 speeds -- not too fast. You're much better off with a FireWire drive, if you can get one...
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--Dave Nanian
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