Maybe this will help someone.
When I upgraded to Win XP, I lost the ability to
format floppies capable of being read by my Atari 1040STFM.
Fortunately I have
a dual-boot system that also runs Win ME, so I can use my legacy SCSI scanner etc. I
installed a small prog on ME called GRDUW
handy utility has a variety of formatting options, including 720k which works perfectly
with the Atari.
A bit more of a hassle to do a simple job but problem solved
GRDUW only works on Win 95, 98 & ME systems.