Hi there... i also have the Sandisk Cruzer 16gb. i am having the same problem cannot transfer files over 4GB. The help files tells me to format it as NTFS but that option isn't available to me. I have Windows XP and am running SP3 on it. Please help and advise. Thanks.
Be aware that if you use "Optimize for Performance" then you should be careful to make the "safely remove drive" request before unplugging the drive. Performance-optimized drives do write caching which can cause data corruption if they're not removed cleanly.