I had that problem when I installed a couple games. Turns out the problem was special characters (exclamation point, parenthesis, etc.) in my password. I had to change my password, install the games then change the password back. Of course I also had to use a different password than I used...
Yes you can.
BTW here is a good deal on a Transcend 32 GB drive (15.99).
http://www.amazon.com/Transcend-JetFlash-Retractable-Flash-TS32GJF530/dp/B003MSSWG6/ref=pd_sim_e_10
Got a good review from NLee the Engineer. I trust that guy's reviews more than any other person for electronics on Amazon.