usb flash drive not a valid backup location for system image

Nope!

Just :

Here's your steps:

Put your USB device in the port, make sure that it is formatted with NTFS, (use disk manager in 'Computer Management' to accomplish this...)

Place a folder on your USB drive (It's probably the 'E:' drive after formatting it... just be sure you're using the right one).

Right-Click the folder and choose 'Share With...'

Select 'Everyone' and make sure 'Read/Write' will be the permissions.  

Click the 'Share' button and close all your windows, then....

Use the File History Applet/Utility from the Start Screen to open up the 'File History' control panel.  In the start screen, type "File History" and choose 'File History' not 'File History Settings'.

[  Note: Don't use File History from the standard Control Panel, it's not the same.]

At the very bottom-left  of that page, you will see, 'System Image Backup' (Click on that)  

Choose to backup "On a Network Location"  - (the bottom of three radio buttons in the window).

Then click on 'Select'

In the new window, click on 'Browse' to locate the folder you shared, and select it.

Place the account credentials in the field for an 'Administrative' account, then click 'OK'

This works exactly 100% of the time!

At your service...

Brion Bell

Don't give up and don't buy a drive!

Here's your steps:

Put your USB device in the port, make sure that it is formatted with NTFS, (use disk manager in 'Computer Management' to accomplish this...)

Place a folder on your USB drive (It's probably the 'E:' drive after formatting it... just be sure you're using the right one).

Right-Click the folder and choose 'Share With...'

Select 'Everyone' and make sure 'Read/Write' will be the permissions.  

Click the 'Share' button and close all your windows, then....

Use the File History Applet/Utility from the Start Screen to open up the 'File History' control panel.  In the start screen, type "File History" and choose 'File History' not 'File History Settings'.

[  Note: Don't use File History from the standard Control Panel, it's not the same.]

At the very bottom-left  of that page, you will see, 'System Image Backup' (Click on that)  

Choose to backup "On a Network Location"  - (the bottom of three radio buttons in the window).

Then click on 'Select'

In the new window, click on 'Browse' to locate the folder you shared, and select it.

Place the account credentials in the field for an 'Administrative' account, then click 'OK'

This works exactly 100% of the time!

At your service...

Brion Bell

Hi, Manasa...

It is understandable that you are woefully out of touch with reality.  The reality is WINDOWS 8.x NEVER let's you create a restore image to a USB device.  It's in the basic documentation for the software.  I realize that you're trying, but Microsoft really needs to educate this tier of operators!

The best, and WORKING suggestion/solution is to do as posted here: simply create a folder on the USB device, share it with Everyone (read/write), and use the File History Control Panel, (NOT the standard Windows Control panel in 'Metro' mode...), to create/backup a 'RefreshImage.'  One does not even need to open an Administrative command prompt or use 'RecImg.exe' to create the image.

I'm actually using this method as we speak.

Any questions?

At Your Service,

Brion Bell

Microsoft & Systems Engineer

Unfortunately, Microsoft's 'technicians' rely completely on 'related' technical documents.  I've been a Microsoft Engineer for some years now, I live and work in the U.S., so I actually experience most of the issues that come to this forum.

Therefore one can rarely rely on any of Microsoft's answers in this forum!  (Fact!)

Read up above regarding the suggestion to create a network mapped drive, (give 'Everyone' 'Read/Write' permissions...).

Here's your steps:

Put your USB device in the port, make sure that it is formatted with NTFS, (use disk manager in 'Computer Management' to accomplish this...)

Place a folder on your USB drive (It's probably the 'E:' drive after formatting it... just be sure you're using the right one).

Right-Click the folder and choose 'Share With...'

Select 'Everyone' and make sure 'Read/Write' will be the permissions.  

Click the 'Share' button and close all your windows, then....

Use the File History Applet/Utility from the Start Screen to open up the 'File History' control panel.  In the start screen, type "File History" and choose 'File History' not 'File History Settings'.

[  Note: Don't use File History from the standard Control Panel, it's not the same.]

At the very bottom-left  of that page, you will see, 'System Image Backup' (Click on that)  

Choose to backup "On a Network Location"  - (the bottom of three radio buttons in the window).

Then click on 'Select'

In the new window, click on 'Browse' to locate the folder you shared, and select it.

Place the account credentials in the field for an 'Administrative' account, then click 'OK'

This works exactly 100% of the time!

At your service...

Brion Bell

OneDrive was the first thing I switched off.

But, re: your suggestion about buying a small 1TB drive, it does seem terribly unfair to have to keep spending money until one happens on a device that Windows 10 will deign to back-up to.