Good. Now, in the "Computer" window, right-click on the USB stick and choose "Format...". Choose FAT32 for the File system and use the "Quick Format" option. Double-check that you have selected the USB stick (and NOT the hard drive), then click the "Start" button. When the format is completed, close the format dialog.
Okay, try this: Click the Windows "Start" button, then right-click "Computer" and choose "Manage". In the Computer Management dialog click "Disk Management" in the left-hand tree view. In the lower-middle pane you should see pictures corresponding to the various drives for that machine. Does the picture for the USB stick ("Removable") show any unallocated space?
Aha. When you right-click on the allocated (749 MB) part is the "Extend Volume..." option enabled? If so, then you should be able to extend that partition back to the full size of the USB drive.
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