Have you installed the Iomega W2K ZIP DRive software?
 
What happens if you unplug and replug the drive?

If I unplug and replug windows locks up.
 
No, I haven´t installed the software because it didn´t work under win2k.
Do you know if Iomega have released any new software?

Iomega released new drivers about 2 weeks ago
version 2.2.1 which fully support WIN2k

I have problem with this software. I can't format in explorer, it says that zip drive is in use or something like that. Only place where I can format is my computer.

I have problems with this software as well. My Zip drive is only recognized if I boot with a disk in the drive and then W2k says the disk in the zip drive is corrupt and fixes it. Does this to every zip drive I try.
 
If I boot without a disk in the drive, w2k says to insert a disk whenever I try to access the drive in explorer. Even if there is already a disk in the drive.
 
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PIII650 @ 728
Abit BE6-2
256MB PC 100
TnT2 32MB Ultra

1) As far as Explorer saying the drive is in use, I have found this is nearly always due to the Zip drive being selected on the left, with the contents displayed on the right. Windows 2000 seems to count this as "in use". The solution is to highlight something else at the left (like your C drive), and then right-click on the Zip drive and pick format.
 
2) Using Iomegaware 2.2.1, I have a problem that seems consistant across the 4 or 5 computers I have installed on. When a user other than the one that installed the software is logged in and trys to log out or shutdown, the program IMGICON (or something like that) does not shut down, putting up the progress bar and the option to kill it. Anyone else seen this?

Podman, you must make sure you installing software for all users, which im sure you are aware of. The problem you speak of seems to me like the program or files are installed in the background as usual but the user signed on probably doesnt have rights to that software.