Yes you can.
Use the Hewlett Packard USB Disk Storage Format Tool V2.0.6
http://www.4shared.com/file/15111571...Tool_v206.html
This software will detect the player and you can do a low level format so it will show the true capacity.
I have bought a lot of these hacked players and have been able to fix them all (I resell them at flea markets) except for this new 16gb 4th gen ipod imitation I have now. I believe it is really a 4gb but danged if I can find the right software for it.