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I don't think reformatting does anything unless an error has already occurred.
Reformatting a new card is unnecessary IMO. Besides, FAT32 takes up a few more megabytes than FAT (typical factory format), leaving you with less capacity to work with.
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2x SimpleTech Bonzai USB2 mini-drive/SD card reader
2x Lexar 1GB (Non-Hi Speed!) SD (USA): write speed = 5.5MB/sec (37.5X) Space avail. (formatted) = 975MB
1x SimpleTech 512MB SD (Taiwan?): write speed = 5.3MB/sec (36.4X)...... Space avail. (formatted) = 489MB
RMA'd: SimpleTech 512MB SD (Japan): write speed = 3.9MB/sec (26.6X)... Space avail. (formatted) = 491MB
Sold: Viking 256MB SD (Taiwan): write speed = 1.5MB/sec (10.2X)........... Space avail. (formatted) = 241MB
Sold: Viking 128MB SD (Japan): write speed = 1.5MB/sec (10.2X)............. Space avail. (formatted) = 120MB
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