You will need a third party program to format it, Windows doesnt want to format any drive larger than 32GB as FAT32
You will need this http://download.cnet.com/HP-USB-Disk-Storage-Format-Tool/3000-2094_4-10974082.html tool to do it.
Then you will have a 59.6GiB drive FAT32 formatted drive.
Actually, any Windows from Vista on up don't like formatting into FAT32 at all, to the point where they don't even give you the option to format your flash disk into the format. What they use instead is eFAT, or NFST, a proprietary file format for Windows, which will not be picked up by the Playstation 3 (Since I have a nagging feeling that is where the drive is headed). Trust me, I tried both formats.
The only way to get around this is the program that @Grayfox suggested. It doesn't matter if the drive is 33GiB or 160GB, it will format to FAT32 with little issue.
Actually, any Windows from Vista on up don't like formatting into FAT32 at all, to the point where they don't even give you the option to format your flash disk into the format. What they use instead is eFAT, or NFST, a proprietary file format for Windows, which will not be picked up by the Playstation 3 (Since I have a nagging feeling that is where the drive is headed). Trust me, I tried both formats.
The only way to get around this is the program that @Grayfox suggested. It doesn't matter if the drive is 33GiB or 160GB, it will format to FAT32 with little issue.