Tried to pull files from a container to a 8GB USB flash drive and get "Volumes are incompatible for this operation". Got the same results booting from WinPE or BMB created disk. I was trying to recover recent MS Outlook PST files after a system event today. I've done this before but with a file archive and saved the files to another folder on the HD not a USB flash drive.
A simple answer. The USB flash drive must be in the same file format or in this case NTFS. I formatted a xD card in a USB adapter from FAT to NTFS and that worked.