Hi Andy,
Not sure if this helps.... but...
http://www.dreamincode.net/forums/showtopic45288.htmI notice you mentioned disk management? Have you chosen a drive letter for the device in question in disk management?
As far as I'm aware, drives A and B are specifically assigned to Floppy drives. C is the default boot drive... then after that it seems a pretty grey area. After that, it's a free for all between DVD/CD drives, Extra Hard drives, small Removable Media ports and USB sticks/external harddrives etc.
Although you don't always get the same drive letter, is it possible that you also have something else plugged in at the same time when your External drive doesn't get the same letter? (Even if that something else doesn't have the drive letter in question.)