After searching around, here is how I was able to fix the issue. I replaced some files from the 10.4.9 install package using Pacifist, following this guide under"Revert USB kernel extensions":
http://www.macfixit.com/article.php?story=20070824012114701
Be sure to clear Kernal cache with a tool like Oynx after following the guide. There are some easier steps on the guide you can try first, but none worked for me until I did the kernal extensions.
My external drive shows up now like it should!
Surely this will be fixed in Leopard?
Message was edited by: sabotage79