Windows was unable to complete the format

I had the same problem with my USB stick drive recently. It wouldn't re-format completely in Windows, however I tried the same on Linux since I have that installed on my laptop on it worked fine. You could try using DOS to format your drive first just be careful which drive you format   Alternatively a Linux Live CD or a Virtual Machine may help if you don't have any joy in DOS.

The newer USB flash drives have U3 installed. Read more about it here: http://en.wikipedia.org/wiki/U3

To uninstall U3, see here: http://u3.sandisk.com/

I just don't like manufacturers making assumptions regarding my needs. If I want U3, I will request (or pay) for U3.