I have encountered a strange problem with my USB harddisk. It was recognised as local disk and also denied me access to all my files on the harddisk. If I plugged in the USB flash drive, it is still OK and recognised as removable disk. On another PC my USB harddisk was still OK, recognised as removeable disk and all files accessible.
This has been caused by one of the utility software that I installed on my PC where I activated the USB protection feature.
If you have installed such a utility, check if you have activated the USB protection or not. If you have activated the USB protection, deactivate it. It should solve your USB harddisk problem.