Have you tried plugging it in to another computer? Typically that is what to try and IF it does read in another system it would tell you that the problem is elsewhere.If on the other hand you get the same error issue it might be time to chuck the FD and get a replacement.
i was using my flash drive as xbox 360 storage it worked fine the first time then i removed the xbox 360 storage via the xbox but later found out the i needed to get something onto the usb from the xbox so i tried setting up the storage for xbox 360 again but it didnt work so i tried again still nothing so i removed it then put in my computer, the computer saw it as a usb mass storage device and it even got its brand name off it too (rocketfish) but its says it could not install properly and may not work right, i got to my computer and its not even there, i got to disk mangment and its not there, i went to device manger and it says there is a usb mass storage device conected but its giving me a code 10 saying that the device can not start i then tried pluging it back in to my xbox and the xbox acts as thouugh its not even there. i have nothing on it so if it needs to get wiped im fine with that, please help i have spent almost 4 hours trying to fix it if it helps it says that its in power state D3. please any and all help will be greatly appreciated