Hi Leslie,
I'm not familiar with the JB7, but I have some information about the USB setup, obtained from the Brennan JB7 Knowledgebase document.
The USB port is described as 'Full Speed 12 Mbits/sec'. By today's standards, this speed is VERY slow compared to the B2's USB ports which run at 480 Mbits/sec (40 times slower than the B2)
This all means that the transfer rate to or from the JB7 will not improve with the use of the SSD because the JB7's USB port is the limiting factor.
That was why your original backup took 6 days to complete. That won't change with the relacement SSD unfortunately.
The SSD will need to be reformatted to FAT32, as you have said. The JB7 recognises FAT16 and FAT32, so go for the FAT32 format.
Regards,
Peter.