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I have an 8GB USB Memory stick that I want to format. When I call fdisk -l, I get the following:

Disk /dev/sdc: 1004.6 GB, 1004611174400 bytes
255 heads, 63 sectors/track, 122137 cylinders, total 1962131200 sectors
Units = sectors of 1 * 512 = 512 bytes
Sector size (logical/physical): 512 bytes / 512 bytes
I/O size (minimum/optimal): 512 bytes / 512 bytes
Disk identifier: 0x000646b0

Similarly, GParted lists the drive size as 935.62GiB and when I try to create a new partition, the maximum size is listed as 958,071 MiB.

What could be causing this? And what can I do to reset whatever defines the size of the drive?

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wow! you should celebrate for this.. You 8 GB changed to approx 1 TB.. ;) any way what is the output of df -h. edit your question and post it.. –  Saurav Kumar Oct 17 '13 at 2:26
Either you are doing something silly, like looking at the wrong drive, or the drive is fubar. –  psusi Oct 17 '13 at 3:18
@SauravKumar df -h doesn't say anything about this drive as it is unformatted. –  thornate Oct 17 '13 at 7:47
Please note the difference between GB (10^9 bytes = 1,000,000,000) and GiB (2^30 bytes = 1,073,741,824). Ubuntu generally uses decimal gigabytes, but a number of low-level tools like this use binary gigabytes instead. –  chronitis Oct 17 '13 at 8:17
@chronitis That still won't change an 8GB drive to a 1000GB one. –  thornate Oct 18 '13 at 0:59

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