32gb Cruzer - Windows cannot Read from Disk. The Disk might be corrupted Message

I’ve been using my 32gb Cruzer SanDisk USB drive with no problem at all.

Yesterday when I plugged it on a PC, it brought out 2 Drives as usual, 1 is CD Drive (E) and the other is ‘Removable Disk’, but it does not autorun to ask for password.  When I double click the CD Drive (E) to run the LaunchU3 application, it is now giving me a warning message saying 'Windows cannot read from this disk.  The disk might be corrupted, or it could be using a format that is not compatible with Windows.'

I try to use the USB drive on different computers but same message appears.  I need all my files in it… PLEASE HELP…

this is a sign that the drive has failed. unfortunately since it is password protected and encrypted there is no way to recover the data. hopefully you have a backup of the data that was stored on the device. 

Is my USB useless now?   Is there a way that I can re-format it?

I’m not sure what the equivalent for vista or 7 is, but in windows XP these are the steps to fix that error thing. Plug in yout Cruzer, go to “My Computer”, and right click on the main data storage part. Left click, and select “Properties”, then go to the “Tools” tab. Click on “Error Checking”, then “Check now” and make sure the “Automatically fix file system areas” box, and the “Scan for and attempt recovery of bad sectors” box are checked, then hit “Start”. It won’t take long. This should fix the problem. If it doesn’t, do the same thing for the launch drive part too.