WTH type of SD card do you have?!
-snap-
See, slide, right on the left?
The tiny kind.
The one you put inside phones.
Sorry, I should've clarified, it's the microSD kind.

Update: Formatted again, now my phone says the card is damaged. Asks me to reformat on my phone. If I say yes, it just brings me back to square two with 2.56GB of space.
Do note this was bought last year and was working perfectly fine until a few days ago, when it decided to delete my everything. It was only now that I noticed that much of it's space was missing.