My apologies for prev answer (call me stupid)
are you trying NTFS or Fat -
h/w follows extract from KB which is possibly a solution
Under My Computer, when you attempt to format a removable storage device
that is larger than 2 gigabytes (GB) to use the file allocation table (FAT)
file system, FAT is not an option in the File system box. Only FAT32 and the
NTFS file system are available.
CAUSE
This behavior occurs because Windows XP does not support this functionality
under My Computer.
WORKAROUND
To work around this behavior, format the device at a command prompt:
1.. Click Start, and then click Run.
2.. In the Open box, type cmd, and then click OK.
3.. At the command prompt, type the following command, and then press
ENTER
format drive: /FS:FAT /V:label
where drive is the drive letter for the removable storage device and label
is the label for the device.
4.. Follow the instructions on the screen to format the device.
