Absolutely - I bought an 8GB Sandisk USB Stick to create a Recovery System for my Netbook and discovered Windows 7 wouldn't format it.
Quick search found that exact tool, which is both small in size and quick/effective in operation.
Good tip.
Also available here _http://download.chip.eu/en/USB-Disk-Storage-Format-Tool_176935.html for those who want to read a little about it before downloading.
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