Nicole, 12 hours would not be normal, especially since it is only an 8 Gig thumb drive you are using.
I would expect a backup of under 8 gigs to take no more than half an hour or so, depending on PC speed and if you had a USB 1.1 or 2.0 port.
Please contact support for help, especially since your problem began with discs not being recognized, too.
How to reach support (FAQ) - http://forums.microsoft.com/WindowsOneCare/ShowPost.aspx?PostID=2421771&SiteID=2
-steve