Bingo, that's the thing that was blocking me from adding any permissions. What a weird thing for a minor program to do that.
I simply uninstalled adobe drive CS4 since I don't need it. The thing about that addon was that it was a forced application to be included with the installation of photoshop cs4.
I had to go back to uninstall photoshop, then when the wizard came up to uninstall it gave me an option to remove certain parts, in which it let me uninstall the cs4 drive application by itself.
With that removed, I could go into the interface of windows and add a new user to the external drive using windows explorer, in which i just simply put in "everyone" permission with full access and now I can at least access the files from the...