I agree with lattesurf.
At the moment, there isn't a proper 4GB player, all of them so far have been 'hacked' to show more memory than it actually has in the player.
By formatting it, you have 'wiped' out the hack, displaying the true memory.
Sorry to bear you the bad news. If it's only a new player, I would suggest you let the seller know and ask for a refund as 108MB is really small!!
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