I have a suggestion .......
delete the existing partition
create a 100MB partition
Format it FAT32 or NTFS
In the remaining space create one more partition to fill the rest of the disk
Format it ext (2,3 or 4)
Report any errors from the Gparted progress page at each step.
Exit Gparted and unplug the device.
With the device still unplugged run LiveUSB creator and insert it when required.
The larger partition should be reported and you should be able to install a Primary or First OS on the stick.
If the results are any different please post with as much info as possible .... copy any details and errors etc.
This is what it should look like ......