Solution
After fiddling around, I found a selection to choose what you want to use the USB drive storage space for. From the main menu (Optical Disc, USB Drive, Setup) choose USB Drive. You now have a choice to select the use of the USB Drive for BD-Live storage. Once you make this selection, play your disc and the access should work. Too bad the "technical professionals" forgot to mention that requirement. Hopefully everyone with this problem finds this post or figures it out. Enjoy all.
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