Ditzian,
I am still trying to figure out why you are creating mount points and manually trying to mount the drive. A removable USB drive will automatically mount in the /media directory if the filesystem has no errors. I don't know why you suddenly have problems with the drive, but I suspect it is all due to filesystem errors. As an example, and to duplicate what you have, I reformatted a USB thumb drive as FAT32 with a volume label of MY BOOK. Here is the mtab list, mount list, and permissions on my drive:
darrel@AMD64: 55 items 796Kb -> cat /etc/mtab
/dev/sda3 / ext4 rw 0 0
none /proc proc rw 0 0
none /dev/pts devpts rw 0 0
none /dev/shm tmpfs rw 0 0
/dev/sda2 /boot ext4 rw 0 0
/dev/sda5 /home ext4 rw 0 0
/dev/sdb1 /mnt/Data ext4 rw,noexec,nosuid,nodev 0 0
/dev/sdc1 /mnt/Vault ext4 rw,noexec,nosuid,nodev 0 0
none /proc/sys/fs/binfmt_misc binfmt_misc rw 0 0
gvfs-fuse-daemon /home/darrel/.gvfs fuse.gvfs-fuse-daemon rw,nosuid,nodev,user=darrel 0 0
/dev/sdd1 /media/MY\040BOOK vfat rw,nosuid,nodev,noatime,uhelper=hal,shortname=lower,uid=500,flush,utf8 0 0
darrel@AMD64: 55 items 796Kb -> mount
/dev/sda3 on / type ext4 (rw)
none on /proc type proc (rw)
none on /dev/pts type devpts (rw)
none on /dev/shm type tmpfs (rw)
/dev/sda2 on /boot type ext4 (rw)
/dev/sda5 on /home type ext4 (rw)
/dev/sdb1 on /mnt/Data type ext4 (rw,noexec,nosuid,nodev)
/dev/sdc1 on /mnt/Vault type ext4 (rw,noexec,nosuid,nodev)
none on /proc/sys/fs/binfmt_misc type binfmt_misc (rw)
gvfs-fuse-daemon on /home/darrel/.gvfs type fuse.gvfs-fuse-daemon (rw,nosuid,nodev,user=darrel)
/dev/sdd1 on /media/MY BOOK type vfat (rw,nosuid,nodev,noatime,uhelper=hal,shortname=lower,uid=500,flush,utf8)
darrel@AMD64: 55 items 796Kb -> ls -l /media | grep MY
drwxr-xr-x 3 darrel root 8192 Jul 20 00:22 MY BOOK/
darrel@AMD64: 55 items 796Kb ->
udev does all the mounting of the drive automatically as soon as it is inserted. Notice that my drive, /dev/sdd1, was automatically mounted on /media/MY BOOK. It should be the same with yours. You do not need to modify /etc/fstab or manually mount the drive when it is inserted.
I have no problems writing to the drive, or erasing existing files. You say you have never connected the drive to a Windows machine. If you do not intend to connect it to a Windows machine, I would highly recommend you reformat the drive to a journaling filesystem, such as ext3 or ext4. FAT32 does not have journaling capabilities, which can lead to sudden unrecoverable data loss in some situations. Do you have existing files on the drive that you need to recover?
I am 99% sure fsck.vfat should have been run on that drive. If you want to try to repair it again, first use the mount command to be sure that /dev/sdb1 is not mounted. Then run as root:
fsck.vfat -afv
a=automatically repair the file system
f=salvage unused chains to files
v=verbose mode
If you want to see the full list of options before beginning, enter:
fsck.vfat --help