Part off the issue there is you don't have a System Folder. All the System Folder's items are dumped into the main hard drive. Create an actual folder named "System Folder" on that external drive and dump all the contents of the System Folder on your main drive into it.
@LaPorta I'm not sure that is true - the photo is of an opened folder in "by name" view. Like Crystal Quest here, but scrolled so you can't see the System Folder itself.
