Created VHD on USB drive, in use by SYSTEM, and can't attach/dismount in Disk Management

Currently using Server 2008 R2, and I attempted to create and attach a 1.5 TB VHD on a USB 2.0 drive.

I see the VHD file in the drive, but cannot attach it in Disk Management. I keep receiving an error message: The file or directory is corrupted and unreadable.

As this is a new VHD, I tried to delete the file, but receive yet another error: The action can't be completed because the file is open in System.

How do I attach or delete this drive?