New Retina 32 GB iPad states total capacity at only 3 GB!

I have a brand new Retina 32GB iPad that I purchased at my local Apple Store this afternoon.  I set it up in iTunes and when I tried to sync iTunes told me there was not enough space.  I explored in the iPad settings and found that the listed capacity is only 3.0 GB with 1.9 GB available. 
Am I missing something?  Did I set up something incorrectly?  This is my first iPad so I'm a little confused!

You should have about 28GB available space on your new iPad.
Not normal. Take it to an Apple Store for evaluation.
Make a Genius Bar Reservation
http://www.apple.com/retail/geniusbar/
 Cheers, Tom

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