You did not mention the brand name of your thumb drive, but the 18MB is probably a U3 partition. The U3 Launchpad (LaunchU3.exe) is a Windows program manager that is preinstalled on every U3 smart drive and is not removed by formatting. Download and run the
U3 Launchpad Remover utility to remove the U3 partition. Then you can reformat the drive.
Note: The advertised capacity of the thumb drive may be 4GB but there will inevitably be some capacity loss due to the volume structure (directories
etc.) that must be on the drive before it can be used. There will also be variations in the
reported size due to the binary/decimal conversion. That has always been true whether you were aware of it in OS 9 or not.
Journaling (that is a link to a Wikipedia explaining journaling) is a mechanism for maintaining the integrity of a disk drive in the event of an error or failure in writing data to the disk. You definitely want journaling turned ON.
Unless you intentionally write data to your thumb drive there is nothing personal on it.