Just in case anyone was wondering about mavhc's rather cryptic comment, he means that the space reported on the memory stick is correct. At least it is if you bear the units in mind.
Physical memory manufacturers measure bytes using the SI standard, ie 1 kb = 1000 bytes, 1 Mb = 1000,000 bytes. Software authors traditionally define 1kb as 1024 bytes (2^10) for efficiency reasons. By extension, 1 Mb is 1024 * 1024 (2^20), or 1048576 bytes.
As the orders of magnitude increase, the discrepancy becomes a larger proportion of the total.