The OASYS recognises well beyond 4GB - I have a 500 GB external HD attached to mine and it has cretainly accepted many 10's of GB of data onto it.
this sounds like a HD formatting issue - as in how the HD was originally formatted. I'm not up on all of that but believe that if the disk is formatted in FAT32 format then only up to 4GB can be physically addressed and the rest of the HD space remains unavailable. You may have to back up your backup drive and reformat it in NTFS format. But I'd make a quick check with any computer experts you know (or give someone in PC World a buzz).
Tried formatting as NTSC but the 4Gb disk limit remains.
I used another hard drive, formatted as NTSC showing 160Gb available. Plugged into the O, scanned devices and the new hard disc wasn't recognised. So I formatted using the O Utility menu and bang - recognisable but now only 4Gb available. I've read the parameter guide and it says the O can recognise up to 2Tb as FAT32.
So how come my O formats the disk as 4Gb? (and in such a way that my PC can't reinstate the true physical size - it locks it down to 4Gb leaving me with 2 expensive thumb drives!)