I have one of these devices and this evening, tried to copy a couple of 28Mb files to it so that a friend of mine could take it back with him and use them at home.
Every time I tried to copy the files to the drive, the message came up that it needed a bigger disk capacity. There is nothing on the drive at the moment, so what must I do to make the thing do what it says it can on the tin! In essence I have 1Gb available to me, so I am not sure where the space has gone.
Forget this thread. It seems that when I plug the device in the USB socket, there are two removable discs showing!! I was using H instead of F. But how on earth is one supposed to know that two discs appear!! One was 1MB capacity the other one was the 1GB capacity. The marvels of modern technology!!