Yeah fat32 only supports 4gb and below. You need to format it NTFS.
Here's a general guide on how to do that.
Right click on usb drive select properties you will have an array of options
Select the hardware option then select your drive properties policies
restore defaults
In XP
Right click on your drive select properties then on customize restore Default in W 7
If you need more help with this post a reply
hope this helps
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