mp4fun, To the best of my knowledge 8GB ChiPods do not exist, I am even yet to see proof that 4GB players exist. If it were 8GB you would have had to pay big bucks for it.
If every thing is becoming corrupt over 1GB I would suggest that is the true size of your chip.
You could try formating with MP3 Disk tool, HP Format tool or SwissKnife all of which can be found in the download section.
The other way is to open the player and note the memory chip ( generally the largest chip on the board) serial number and brand and doing a Google search with the info should find you the chips true specs.
Either way I suggest you contact your seller ASAP and ask for a refund.
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If you have been ripped off with a hacked player by a seller submit a report to www.ic3.gov
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