Cruzer Edge not formatted

I have a one month old Sandisk  Cruzer Edge Compact slider design Flash USB device of 4 GB. When I plug it into my Win XP SP3 system today, it says the drive is not formatted.  What should I do? If I format I will lose the data as well as the SanDisk software. I don’t have any use for the latter, anyway. But I don’t know if it is the right thing. Can somebody please offer their advice?