Your Iomega "drive" is actually more than one drive, and you're running into a limitation of the type of partition table Windows Home Server uses for disks: Master Boot Record or MBR. This type of partition table is limited to 2 TB in size for a single volume,
and Windows Home Server only creates one volume. The space over and above the 2 TB that Windows Home Server can use is "unused" and allocated as "system".
Consult the manual for your Iomega drive to see if you can do anything to expose the physical disks to Windows Home Server. Though you may find that you have other problems down the road, as other users have had problems with USB devices in the server storage
pool.
I'm not on the WHS team, I just post a lot. :)