The only thing that I can think of left, is to verify that your USB device is formatted in 32k clusters. (64k clusters will not work).
Originally Posted by gr3en
If you run "chkdsk" in a "cmd" window with admin rights, you'll see the following line near the bottom:
You should see 32,768 bytes. If you see anything else, you'll want to reformat using this tool:
4096 bytes in each allocation unit.
Free Download Magic Partition Manager freeware: EaseUS Partition Manager, Disk & Partition Copy and Partition Recovery Software.
and make sure it is formatted using 32k clusters.
If that doesn't work, I think I'm out of ideas. I've thrown everything at you.