The format should not have harmed the firmware as it resides in a locked partition. If it runs ok drawing power from the USB but does not hold a charge I would say the battery is more than likely faulty. If getting a replacement or refund from the seller is not an option then you could try replacing the battery, I think uxcell.com sells replacement batteries for some of it's players, I have a couple of players that I have used ipod replacement batteries in with good results but it depends on how much room is available for the replacement battery.
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