Yep, since you probably formatted it with FAT32, the file system's overhead requires "extra" space. If you where to use EXT2 you might get a little more out of it.
Find out what the vendor says "1Gig" is. If it's 1000MB, then they are wrong. It is really 1024MB. It's a marketing way of selling you a 74G drive as an 80G drive. Quite a crock if you ask me.
