If hte devices are being read by Vista and XP just fine, there is obviously no need for a low level format. In addition, formatting them to FAT32 is removing a lot of security streams in there that make the drives a *lot* more vulnerable to drive-by malware infections.
I *highly* suggest you stick with NTFS.
As for the drives not working, I'd say something is not working correctly with your USB controller, or else the hub is being underpowered - this can happen via several methods, including:
- PSU dying
- USB 'shield' grounding out on the chassis (yes, I have seen and read about this elsewhere - it can easily happen)
- USB cable going bad
- Motherboard going bad
Etc.