You can format your Xbox 360 USB flash drive memory stick on your PC / computer if you prefer. This can sometimes be beneficial if you are having problems trying to get your Xbox 360 to recognize it not showing up or having problems with the maximum size limit with the files.
1) Plug it into any USB port on your PC.
2) Open 'My Computer'.
3) Right click using your mouse you will see a drop down box.
4) Select 'Format'.
5) Untick quick format and change the file system to 'Fat32'.
6) Click 'Start'. There will be a bar that will show the progression at the bottom of the software tool built into Windows. This can take any were upto 30 seconds to a minute. It all depends really how much is stored on there.
7) When done you will be notified on screen that its successful and completed.
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