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Are you using a Mac or PC to format? I had all sorts of issues trying to get it correct, but if you're on a Mac here's what I did:
Format: ExFAT
Partition Map: Master Boot Record
Disk Utility on my Mac was defaulted to GUID Partition Map. No clue if this translates over to Windows, but this is what fixed it up for me. Let me know if you get it straightened out.
Edit: When you plug it in, you will get an intermittent flash. Don't worry about that, because it takes a second for the vehicle to communicate with your USB Drive. If it is still greyed out, give it a minute or so.
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