Yea Thanks Barman. I was just wondering if it formats it to NTFS or what. There is not much info on this. I don't understand why you can't adjust the slider to use all. There is some indication it may have something to do with using the exFAT system. I will wait until more info surfaces to use it. Thanks.
I found this posted somewhere.
exFAT (Extended File Allocation Table, aka FAT64) is a proprietary file system suited especially for flash drives, introduced by Microsoft for embedded devices in Windows Embedded CE 6.0 and in their desktop operating system, starting with Windows Vista Service Pack 1. exFAT can be used where the NTFS file system is not a feasible solution, due to data structure overhead.
The advantages over previous File Allocation Table (FAT) file system versions include:
* Scalability to large disk sizes
* Theoretical file size limit of 264 bytes (16 exbibytes), limit raised from 232 bytes (4 gibibytes in FAT32)
* Cluster size of up to 2255 sectors, implementation limit of 32 MB
* Free space allocation and delete performance improved due to introduction of a free space bitmap
* Support for more than 216 files in a single directory
* Support for access control lists (not supported yet in Windows Vista SP1)
* Support for Transaction-Safe FAT File System (TFAT) (optionally WinCE activated function)
* Provision for OEM-definable parameters to customize the file system for specific device characteristics
* Timestamps can be in UTC rather than only local time (starting with Vista SP2)
Additionally, exFAT requires less disk space overhead than NTFS; One reviewer who performed comparative tests found that a 4GB flash drive formatted with NTFS uses 47.2 MB of disk space for overhead, whereas exFAT uses 96 KB.
The disadvantages compared to previous FAT versions include:
* Devices using exFAT will not be able to use Windows Vista SP1's ReadyBoost capability. (Windows 7 supports the new exFAT filesystem with ReadyBoost) 
* Licensing status is unclear. However, Microsoft has previously patented portions of the FAT file system.
* Not available for previous versions of Microsoft Windows.
According to user experiments, exFAT formatted drives can be fully used also on Windows XP/2003 systems, by copying two files (uexfat.dll and exfat.sys) from an existing installation into the corresponding folder of Windows XP/2003.