Hi henry,
I have the same black sony player as yours, same board numbers and chip numbers.
the 1GBAA chip is most likely a 1 gigabit = 128 megabytes.
you need to format with fat or fat16 only to get the true size, which will appear about 110M.
see also
http://forum.s1mp3.org/search.php for more info if you have trouble.
The memory is a cheap trick by makers, using cheap and small memory rather than much more expensive large sizes - then they hack the firmware to make it appear to be the large size - but this makes the player very unreliable and will corrupt the file system if you try to put on more than the 110M it can really hold.
No need to back up the firmware as formating does not hurt it.
You may need to use the supplied disk tool to get the correct memory size to appear. After this you will need to reformat it again maybe with the hp flash drive tool.
Finally you will have a nice little mp4 that can fit about 30 songs.