Im trying to install Kubuntu 12.04 onto a USB pendrive (8GB). All of the installs I do (Full and Live installs) never use more than 4gigs of the USB. Im formating the drive in Windows, as FAT32. How can I make the install use the whole USB drivespace
Don't format the USB pen first - let the installer sort out the partitioning. It will probably create an EXT3 or EXT4 partition and use the whole pen.
Ensure you add a boot partition to the pen also, if you're planning on booting from it.
If you do a default install it will probably just put your system under / under which it will also put the boot partition under.
So: / -->under will be several other partitions including /boot