USB booting :: syslinux problems



I have successfully repartitioned my 512K USB pen drive and formatted it with an ext2 filesystem.  However, now when I try to run syslinux it says it does not like the size of the partition (can't handle anything beyond 512!!??)  What is going on, and how can I fix it.  I am just dying to get Linux running on my pen drive!!!  ???

original here.