USB Disk Drive Store

I just bought a new ILogic USB Flash Drive 2.0, that contains 1GB worth of memory. I plugged it into my computer normally, and it automatically installed it successfully, however when I went into [ My Computer/Disk Drive E:\ ] the file that contained my USB Flash Drive, it said that it needed to be Formatted, so I did. There was a problem, I looked at the capacity and it said "Capacity : 8MB", but my Flash Drive is 1GB, I thought it was just a glitch so I clicked "Start" to start formatting the Disk Drive. When it was finished about 1 second later it said "Windows was unable to complete format" then it said "Disk E could not be formatted".
I’ve tried everything from opening "Disk Management" in run.. (diskmgmt.msc)
to downloading things that was SUPPOSED to help.
And I still have the same problem.
What’s going on?
Why is this happening?
How can I fix this?
Can you help me?

Please give details for me to understand my situation.

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