So how does this "feature" work? I plugged in a 4GB PNY USB memory stick into the jack, but it won't even register on the screen. I have checked that the connector is live- I plugged my cell phone into the jack and it read the microSD card as well as gave my phone a charge. Is there a setting that I forgot to configure?
The default for brand new USB sticks is FAT <something>, the <something> being a function of the capacity of the USB stick. Larger sticks will be FAT32. Windoze certainly supports FAT <something> for data, but NTFS is its native file system. MacOS Extended (Journaled) is the default for MacOS X, but (almost) any device, certainly including USB sticks, may be initialized as FAT <something> under OS X's Disk Utility. Such a device may, therefore, be moved between Windoze and MacOS with no issues.