USB Drive Memory Trouble

I have a Visual Land combo MP3 Player/Flash Drive with 1GB. I ended up with some corrupted files that caused the player to stop from time to time.

I decided to reformat. VL’s instructions were to format once as “FAT” and then as “FAT32” using Windows XP.

All is working now except that I can only store 244MB of data and I can’t even see the other 75% of the available memory.

Any ideas or known utilities for formatting this drive to get all my memory back?