This is known bug with Iomega's software.
The program that causes explorer to show the Icon sometimes has
To temporarily fix the problem, press Ctrl-Alt-Delete ONCE.
Find Imigicon in the close program box and end the task.
Then click start | programs | startup | Iomega Disk Icons
This should correct the problem at least for a while.
Even when the wrong icon is displayed, the drive should work as usual.