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Both Microsoft and SanDisk stopped support for Windows 98 (that is the 1998 version of Windows) in the middle of 2008 (two years ago). So, if Windows 98 does not recognize the "plug-and-play" device (manufactured since the middle of 2008), then you'll have to upgrade your computer to Windows XP or Vista or 7, or use an "older" flash-drive that Windows 98 did support.
Many Verbatim hard drive models with a FireWire interface come “Mac formatted” – pre-formatted for immediate use with Apple Macintosh computers running Mac OS. They are formatted as HFS+, the preferred format when using the drive exclusively with Mac OS computers. Note: A Mac-formatted drive will not mount on a Windows PC. If you plan to use a Mac-formatted hard drive only with computers running Mac OS, you can leave it formatted as it comes from the factory. However, if you plan to use your hard drive with computers running Windows, or with both Mac OS and Windows computers, you should reformat your Verbatim hard drive before saving data to it. Generally, for use with both Mac OS and Windows you should format to FAT32, and for use strictly with Windows you should format to NTFS. More information about these two format types is given below. FAT32FAT32 is compatible with the following Windows operating systems: Windows 98, Windows 98 SE, Windows Me, Windows 2000, Windows XP, Windows Vista. FAT32 can also be read by Apple Macintosh computers running Mac OS. Limitations: Maximum file size is limited to 4TB. Furthermore, using the formatting tools included with Windows 2000, Windows XP, and Windows Vista users will not be able to create partition sizes larger than 32GB (though they can access these larger partitions). This limitation does not apply to other supported operating systems. Furthermore, Verbatim provides a FAT32 format utility (see further below for download instructions) that eliminates the 32GB partition limitation. FAT32 is a good choice if you’ll be using your Verbatim hard drive with older computers running Windows 98, Windows 98 SE, or Windows Me, or if you’ll be using it with both Windows and Mac OS computers. NTFSNTFS is compatible with the following Windows operating systems: Windows NT, Windows 2000, Windows XP and Windows Vista. NTFS usually results in higher performance than FAT32, and will permit users to create partition sizes larger than 32GB, and file sizes larger than 4TB. Limitations: NTFS is not compatible with Windows 98, Windows 98 SE, Windows Me, or Apple Macintosh computers running Mac OS. NTFS is a good choice if you will be using your Verbatim hard drive only with one or more computers running Windows XP, Windows 2000 or Windows Vista. This is also a good choice if you plan to store files larger than 4TB, such as digital video files.
I own three flash drives, and follow this procedure. When you connect a flash drive, it should show up in "My Computer" as a removable drive - with a letter designation. Windows 98 requires driver software, XP and VISTA does NOT.
When you DISCONNECT the flash drive, you should "right click" on the drive icon, and select EJECT. The little light on the flash drive will go OUT, and THEN IT IS SAFE TO REMOVE IT. If you just pull the flash drive out without going through the disconnect ritual, you risk blowing the drive, and it is kaput. Doesn't always happen, but it can.