Problem with external enclosure

My recently purchased Bytecc ME-835 enclosure does not appear to work properly with my Seagate Barracuda 7200.8 160 GB drive. When connected to my USB port, using Windows XP SP2, the folders on that drive show up as expected, but when they are opened, some folders are empty, while others contain files that are invalid. Furthermore, I am barred by Windows from modifying or creating files on that volume. After removing the drive and connecting it to an IDE channel, the files and folders open without any problems, much to my relief. This problem occurs regardless of what jumper settings are used, and the manual did not specify any certain jumper setting anyways. Should I assume that the enclosure is defective, or is there another solution?

Id try to copy the files off the drive, wipe it, repartition/reformat it and then try.

Is the drive Fat32 or NTFS? (probably NTFS)

NTFS. I could do that, but it seems unnecessary for a simple USB enclosure.

Well, it turns out I was getting delayed-write errors due to a few bad sectors in the Master File Table. Using SeaTools from Seagate, I was able to isolate those bad sectors, and now the drive functions properly, without a need to format!