I have a 32 gig (29 gig FAT32 formatted) thumb drive that I discovered has 145 meg of unallocated space at its beginning. (Found it while deleting a PQSERVICE partition from a hard drive.)

I'd like to delete the existing partition and create a new one that uses all the space, but Disk Management in XP won't delete it nor will it create a new partition in the unallocated space.

Doesn't matter that it's 145 meg, it's space I paid for and while small compared to the rest of the storage, 145 meg can still hold a lot of files.

http://www.partitionwizard.com/free-partition-manager.html

Did, you tried with diskpart ?

Also, perhaps, you'll need to remove the existing partitions (be sure to make backups of the data stored there) and recreate a new partition scheme after a clean (it will wipe all from the select drive so be careful) from diskpart.

I used the HP USB formatter. It completely wiped the drive and used all the space available.