I have experieced of formatting the USB drive from a new way, and it was sucessful,
>plug in your USB,
>Restart ur PC,
>Boot From XP bootable CD
>follow the instructions upto the step when you have to choose a drive to install the new windows.
>select removable media, and press D for deleting the partition,
>than make new partition at same time,and than format it in NTFS or FAT file systems.
Hope ur problem will be resolved.
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