Unable to read usb memory stick + "the disk you inserted was not readable by this computer"

Hi Everyone,
  Today I was tryign to use a brand new memory stick 8GB-Samsung PNY on my Mac Book Pro. (Mac OSX 10.7.5)
  1. I do not see this drive in the Finder.
   2. Diskutil could detect the drive.
   3. I was trying to put ubuntu image file on the drive from the terminal uitility and I have this error message in a dialog box:
      "the disk you inserted was not readable by this computer"
4. Clicking on initialize helps me realise that the drive is detected. But I do not have a clue on how to proceed from here. I am new to Mac and its file system formats.
The same issue happened with my 500GB external Western Digital Hard Drive. I was reading on forums that WD got some issues with Apple is trying to resolve. I expected to not have this road-block with another brand but it happened with my memory stick. Now I was forming an impression that something should be done to external storage devices inorder for me to use them Mac OSX.
Kindly enlighten me and help overcome this issue.
Thank You

Thank You OGELTHORPE.
I erased the memory stick and formatted to "Mac OS Extended(Journaled)".
I attempted once again to use the "sudo dd" command from termial trying to copy the Ubuntu image file to the memory stick.
The operation termainates with the same message
      "the disk you inserted was not readable by this computer"
The termainal message says some bytes got transffered in so many seconds. It looks like this operation is being terminated in the middle.
Have any suggestions and work arounds?

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