OS X :: Unable To Format/Using Transcend's 8GB Flash Drive?

I was recently gifted an 8gig Transcend Flash Drive by a friend. When I inserted the drive into my unibody MacBook Pro running Snow Leopard, it pops up a window that says:

The disk you inserted was not readable by thing computer

Initialize / Ignore / Eject

Clicking on Initialize takes me to Disk utility and if I try to format the drive. it gives me an error that says:

Partition failed - POSIX reports: Cannot allocate memory.

I then take the drive to a Mac that's running Leopard, but the same thing happens there as well, except the error when formatting tells me it's an 'Input / Output error'

On both the Macs, I've tried formatting with a GUID and MBR, but neither works. I've tried to format it as Free Space/MS-DOS format or even the native Mac OS Extended, but nothing works.

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Now, before you come to the conclusion that it may be a faulty thumb drive, I need to tell you that the drive works perfectly fine on a PC. I've tried it on 3 different PCs, running XP, 7 and Ubuntu respectively. All the tree are capable of detecting, mounting the drive and read/write it just fine. I could even format the drive just fine on all three computers.

What's more, I installed Mac Drive on a XP machine and it could format the drive as HFS+ too.

This thing is driving me nuts for the past 12 hours and I'm out of solutions what to do.