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The usual limit is exactly 2GB, not 1GB.
It's a limitation of the file-system used for the directory of the disk-drive, when formatted according to the 'FAT32' specifications.
So, copy all the files currently on the Verbatim to your disk-drive.
Then, "reformat" the external (not the "internal") disk-drive, using the 'NTFS' file-system. This file-system has a maximum-file-size limitation for one file that is _much_ larger than the capacity of your Verbatim.
Then, copy all the "saved" files back onto the Verbatim.
Finally, copy your "large" files onto the Verbatim.
Some Verbatims have a write protection switch on its side - make sure it's not activated. Then open the properties of the stick in My Computer. If in there the stick isn't set as read only then it has died - there's nothing more you can do to save it. Junk it and get a new one.