One must wonder, how come when you use a flash drive at gargantuan sizes it seems that a simple file transfer of over 4.2GB might tell you that there is not enough space in the drive. Well, it is not your fault, neither the flash drive. The flash drive by design is formatted with a FAT32 file system. In a FAT32 file system, the maximum size of file per transfer you can do is 4.2GB. This limitation is by design.

To overcome this, one can format the flash drive to exFAT. exFAT is practically limitless when it comes to file transfer sizes. For exFAT, it is 16 Exabytes per file transfer.

Source: http://www.ntfs.com/ntfs_vs_fat.htm

To make life simpler, one can reformat the flash drive from FAT32 which is default to exFAT. To do this, for windows 7

~The simple way~
1. Right click on the flash drive
2. Format
3. Choose exFAT as a file system
4. Format the flash drive

~The complex way~ (not fool-proof)
1. Click on the start
2. Run
3. Type diskmgmt.msc
4. Find the flash drive needed
5. Format it using the exFAT file system.

For the complex way, i need to show some screen shots to get it to work. Now with exFAT, you can transfer files with unlimited sizes.