Once formatted no version of Windows will ever show the actual size of the drive. Part of this is due to the super-secret hidden++ folders that windows uses to keep track of everything you do, every webpage, picture etc is logged. You cant get to those folders unless you know your way around DOS, and know the commands to find them. Formatting in itself requires a certain amount of space to be used just to write the particular type filing system, be it FAT or NTFS.