Hi
I tried several times using the same 'removable' flash drive and it always failed to format the drive correctly.
However I tried a different one (8GB Verbatim removable) and it worked.
I then tried a 2GB Lexar flash drive (Removable) and that worked too.
I then used BootIt to 'flip the RMB' so that it became a Fixed disk. When the Avast utility tried to format it, I got a 'Preparing files' message and then it simply finished (no error message). Note that when a removable flash disk is used, Avast warns that the drive will be erased. This does not happen when the drive is converted to a 'fixed disk' type.
Also note that the tool lists both removable and non-removable USB drives (even though non-removable drives won't work).
The 2nd issue is to do with the 'Drive A:' error message you get when the USB drive boots to WinPE - this occurs (it seems) because the code is looking for the \rescue folder on a removable drive.
If I make a rescue-disk.iso using the Avast tool and copy it to my Easy2Boot multiboot removable USB drive + extract the whole \rescue folder to the USB drive, then it boots OK.
If you do the same thing but to a Fixed-disk type of Flash drive or a USB Hard disk, then you get the 'Drive A:' error when WinPE boots.
So the utility does work (I used Win7-64bit SP1) but you need a reliable, removable USB drive.