That's a very fast response considering you're the developer, im even more impressed
I did not use compression at all, since i wanted to be as careful as i could to make sure the backup of this USB drive was as accurate and safe as possible.
I did have the chance to try the procedure on a different system some days ago though! This was a Win 8, 64 bit system with USB 3 support. My usual system is a Win 7, 32 bit, with USB 2. On this other computer, my backup progress reached 76%, then the process just shut down, no message shown (if i remember correctly, sadly i was in a hurry). However, this time it produced a .img file (it was 76% of the size of the USB drive though, around 47gb). I did not have the time to try to restore that image to a new drive though, but im hoping to get the chance to try that soon...
Not wanting to stress the device too much i did not try to do any more backups of it until i felt more confident i had found the reason why it wouldn't backup. I have still used it for some days without any problems...Today however, the drive i have been trying to backup, failed

It didn't die completely, it still boots OK, but when accessing the larger encrypted partition of the drive, it becomes unresponsive. When trying to access the drive from a system that is not booted from the USB drive in question, the device shows up in the list of drives, but when the encrypted volume is accessed, the whole drive fails completely and the device disappears from the list of drives...
Im guessing it is corrupted now, but i still wonder how i can make an image of it... Even if it is corrupt, i would like to have an image before i try the rescue tools, to avoid screwing it up even more... Any ideas?
Im going to try to backup the drive that was planned to be the host of the restoration now (identical USB stick) to see what happens. It has the same OS but not the same encrypted volume. Any ideas are very welcome, i would really need to access the drive i was originally trying to backup
I should have seen this coming, i know. But i really didn't think it was this far gone since all the benchmarks and disk checks etc. have found no problems what so ever...