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Always keep in mind that in reallife 1GB = 1024 MB = 1024*1024*1024 bytes
A harddisk manufacturer counts differently (in his favor) as he is telling you that 1GB = 1000 MB = 1000*1000*1000 bytes
So a 160GB harddisk really is 160.000.000/(1024*1024*1024)=149GB
This problem was not that big when the drives where 20GB, then you could only use about 18GB. You where then only missing 2GB but as the drives are getting bigger the difference is also getting bigger. This is why there is a lawsuit going on right now as they think that they are being ripped of (and they anf you are!)
I am not sure which hardware you are currently using. But do not use the format command, instead goto your "Computer management" and create & format the partition. This should give you the 149GB
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