TS1550 Time Machine issue with Mountain Lion.  Can you help?

I have an Iomega Mac Companion used as an external backup drive for my Imac running Mountain Lion. After launching Time Machine, I got an error message that said the backup couldn't' be completed because an error occurred while creating the backup folder.  I rebooted and everything was fine for 24 hours.  Since then, I get the same error message even after another reboot.  In Time Machine preferences it says "oldest backup none" and "latest backup none."
Any suggestions?
GR

Finally have it solved!!  Sort of...  I spoke with Mac support on two occasions and they were extremely helpful.  Thought the issue was with the firewire 800 connection.  Switched to a USB connection and everything worked great...for about 24 hours.  Then had the same error messages.  Chatted with Iomega tech support and they finally admitted that there are known issues with Mountain Lion, there is no work around and they have no intention of making it compatible with 10.8.
I'm returning the drive today.  Thanks for your help and suggestions.  Suggestions for a decent back up hard drive that will work with Mountain Lion?

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