when you format the drive in windows setup, see what letter it comes up as this will be the letter assighed to it when windows builds, USB devices sometimes take primary drive letters as on some mobos they are scanned first.
That should fix the ARC path right, and make it boot but the drive would still be I:
The only way i've managed to do this sort of thing before is with third party soft like partition magic (and that screwed up and took me a week to fix!).