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You won't lose your data if your xbox crashes, the hard drive should be fine. If you're worried, buy yourself a memory card and periodically save your gamertag and saves on it...
I don't think the USB drive works well. I tried plugging my USB hard drive into it and nothing happened, so I doubt you can use it like you're trying to.
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Proud PS3 Owner! < 500GB HD, InFamous, Haze, Need for Speed: Pro Street, Tiger Woods PGA Tour 10, Bioshock, Ratchet & Clank Future: Tools of Destruction, Metal Gear Solid 4: Guns of the Patriots >
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