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help with extrenal harddrive and xbox?

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i have a 500g extrernal harddrive that im trying to use with my xbox 360. when i use it for the xbox it says it only has 16 gigs. should i try to format it on my computer and see if it clears up any more space, or is this just how its going to be?

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  1. You can only use up to 16GBs when you connect and format a USB device on your 360 to store its content. You are not limited to a certain size when you’re just streaming media like music and movies from a USB device to the console.

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