First of all, thanks to all of you for your advice and suggestions.
I believe I have a hardware failure.
In addition to trying to follow your advisories, I have downloaded, installed, and launched tools available online at: http://download.cnet.com/HP-USB-Disk-Storage-Format-Tool/3000-2094_4-10974082.html
and also at: http://www.flashmemorytoolkit.com/
Although Windows recognizes the drive, the HP tool does not. The flash memory tool kit re-formats it to 1 MB (again).
So I give up, and will return the drive to the retailer, hoping for a credit or exchange.
Again, thanks for trying to help.