Unfortunately, the Macintosh can't boot from USB based hard drives -- only compatible FireWire ones... that would likely explain the problem.
I'd strongly suggest exchanging the drive for a FireWire one, if you can -- you'll be much happier if you can boot from it.
Note that just because you can't boot from it, that doesn't mean it's not a good backup. It's still good, and will be bootable once restored to a compatible device.
(And, truly, there are no stupid questions, so fire away!)
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--Dave Nanian
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