When it is plugged into your computer, open up My Computer, and find the drive, highlight & right click and see if you can format it there. My USB stick is 128 MB and I could only choose FAT or FAT32 to format; I chose FAT32.
That might work.
I received a free USB stick recently.
It seems that it is formatted differently somehow. XP recognises one partition of the USB stick as a CD, which has an autorun utility that opnes a webpage. The rest 60Mb of the 64 is recognised as an external drive and can be used for storage. Is there a way to format this stick and get rid of the separate partitions?