I had the axact same problem and these instructions fixed it:
This guide is for you if:
1. You've bought a mpx player larger than 2 GigaBytes capacity (eg 4GB, 8GB, 60GB, etc). Not limiting to larger than 2GB, smaller capacity (eg 512MB, 1GB, etc) players are also subjected to possible memory hacks.
However, recently i've realised that the Actions chipset does support upto 4GB (2x2GB). Also, there were some unconfirmed news of genuine 4GB players.
2. You just bought a new player.
3. You are experiencing "Format Error" messages when adding or accessing music/videos on your player.
4. You are experiencing frequent Player Restarts (hanging on the hourglass) when playing certain songs.
5. Your player duplicates the music/video files that you add to it.
6. Your player does not allow you to move/delete files that you have copied to it.
If you fit any one of the above (or even all), then this guide is for you.
Why you should format:
1. Not formatting will only cause you ALOT of trouble and hassels in the future.
2. Not formatting increases the chance of killing your player in future, and you will need to perform the "Dead Player Recovery".
3. Ensures that what you have bought, is of the actual memory capacity.
4. If it is a gift for someone, you don't want them to come back to you with the above mentioned problems.
Common Myths regarding this formatting procedure:
1. You will not lose any firmware/theme related files.
2. You will not accidentally kill your player whilst doing so (unless you unplug or disconnect your player during the format process).
On completion of this guide, should you end up with lesser memory than what you have paid for, it would be recommended to contact your seller for a full refund.
Also, take a minute to fill in an online petition against eBay, Paypal and fraudalent sellers who knows about this problem, but persists to trade with such fraud items for monetary gains.
Every signature plays a significant factor, the more signatures we have, the better chance of eBay shutting down such sellers permanantly.
Back Up All Your Data Before Proceeding! This Guide Will Clear Everything In Your Player's Memory Chip!
Install MP3 Utilities, any version will do. It usually comes on the CD with the player, or you can download version 3.68
Here, or version 4.03 Here, or version 4.05 Here. Any one of these will do. The Disk Tool Utility is the same.
Start up MP3 Utilities Disk Tool.
You will be shown a screen like this:
Ensure that you select LOW Format Type.
Next, go to the Partition and Encrypt tab as shown below.
Now, slide the Partition Slider all the way to the Right.
You will notice the "Setting encrypted disk capacity" increases, it is normal.IMPORTANT.IF YOUR MP4 PLAYER IS LIKE 2GB OR MORE MAKE SURE THE PARTITION AND ENCRYPT TAB WHEN YOU INCREASE IT SAYS YOUR PLAYERS MEMORY.FOR EXAMPLE.IF YOU HAVE A 4GB MP4 PLAYER AND YOU ARE SLIDING THE PARTITION AND ENCRYPT TAB MAKE SURE THAT WHEN THE NUMBER INCREASES IT SAYS SOMETHING LIKE 4000MB.IF IT DOESN'T DO THIS DO NOT REPEAT DO NOT DO THIS ENTIRE PROCESS.
*NOTE* Ensure That You Do Not Click The "Set Username And Password", Leave It UNTICKED.
Next, click on Start to begin the format and partition process. You will be presented with a dialog box like below, click on Yes to proceed.
It will take a few moments for the process to complete. You will notice that your player would disconnect from the computer, and then re-connect back again.
You will be presented with the "Complete setting disk partition!" dialog box like below.
Go to My Computer and check that now you will two memory drives for your player. You might need to click Refresh or press F5.
One of which would be small (about 17MB), and the other would be the remaining memory capacity.
*note* it seems that some members reported that they do not see this extra drive appearing. Do not worry if it does not appear, just continue to proceed with the guide.
Now, go back to the Partition and Encrypt tab.
Slide the Partition slider to the Left, and click on Start.
You will repeat the process and the "Complete setting disk partition!" dialog box would appear.
Check in My Computer that now you will only have One single memory drive for your player. Right click on it and select Properties, this is your actual real memory capacity.
Now check your player's Memory Info for the correct memory display.
To access this, go to your player's SYS TOOL >> MEMORY INFO.
Your player should display the actual memory size that you have just checked.
Check if the percentage is at 0%. If it is, you can skip Step 4 below, and continue to Step 5.
If your player's Memory Info does not show 0%, you will need to complete the below procedure.
Right click on your player's memory drive, and select Format.
Now a new windows format screen would appear.
Select FAT in the File System dropdown menu.
If after completing Step 3, your player really does have 4GB of memory, then you need to select FAT32 instead. As FAT only supports upto 2GB.
Click on Start to begin on the format process.
A warning will appear for the format, click on OK to continue.
Wait for a few moments while Windows formats your player.
When completed, check your player's Memory Info again, it should display 0% now.
Once completed, sit back and start copying music/video files to your player and enjoy your stuff!