Regarding FAT32 on filesystems bigger than 32GB, you can still do it in DOS:
format /FS:FAT32 X:
(where X: is the USB stick)
I will give NTFS and/or FAT32 a shot when I get home.
Kind of sad that I come on bimmerfest to AVOID work, and here I am drilling into the technical details of filesystems and whatnot, just like my IT day job :-)