New
#721
Peter, that Disk Management screenshot looks strange to me. Your D partition is labeled "Recovery", but you said it was empty. And it's listed twice in the upper panel, once with a NTFS designation, once as blank. Probably something left over or amiss from the Reset you did. For now, I don't think you should mess with it at all until someone else with more experience with this can help explain and advise a correct and valid solution.
Meanwhile.... forget the thumb drive for backup, way to small, among other things. It can be used for other things later.
The 32GB SD card you have can be used if it's empty, formatted correctly, and we use the proper software.
Put the SD card in your machine, go to MY PC, right click on the SD icon, click on properties, take a screenshot of the entire display. This will show me the data about your SD card and the space used and free on your HDD.
We'll take it from there.