This tool has always worked for me when windows wouldn't let me format to the full capacity. http://download.cnet.com/HP-USB-Disk-Storage-Format-Tool/3000-2094_4-10974082.html?tag=mncol;3
Testimonial: "Thank You very much.....Very Fast reply....This will create USP for operations"
Been there, done that!
It sounds like you formatted it to FAT or FAT32, which take up ALOT of space. So go to my computer, right click on your SD card, and go to format. From there on the drop down menu select "NTFS" and format it! That should free up most of it! Good Luck!
The drive or device you are inserting the card into may only support up to a 1 GB sd card. You can also try putting it into a different device such as a computer or the photo reader at a picture printing kiosk
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