Hello
I had exactly the same problem I put fedora 12 on a 4Gb usb stick with the fedora hosted live usb creator, unfortunately the 700Mb of fedora 12 was the only thing that then existed on the memory stick, the 2 films and backed up files no longer existed, my ps3 reported an unrecognised usb device, windows and linux showed a 700Mb usb device that was 100% full, I'm sure some data recovery software might have been able to recover my files.
gparted also showed it as 100% full 700Mb
I formatted the usb stick with windows built in format tool, so then had a 700 Mb empty usb stick, ps3, windows and linux recognised it as such, in the end I used windows hp usb format tool
http://www.softpedia.com/get/System/...mat-Tool.shtml it was the only thing I found that saw it as 4Gb, I formatted fat32 and it's been fine since, I will never use fedora live usb creator again, which is a shame as unetbootin won't create a persistence file