"The synctool works just fine, I'll insert a blank USB drive that's been formatted to FAT32 into my unit and it successfully places a "synctool" folder on the drive. When placing this drive into my computer, toolbox does not recognize it, but the computer does. "
seems like you have done the right steps here. clean/formatted usb fat32 then run the synctool on the unit to copy the right files over before running toolbox on the pc.
what ive noticed is that if you have updated the firmware on the unit after "prepping" the usbstick with the synctool folder etc it wont work due to new files. so do an synctool after a firmwar update. but i think you have this sorted. Also have the latest update of toolbox on your pc installed. ive noticed on prev updates there was a lack of support for usb sticks. Maybe you could try the update with an sdcard? Maybe the latest updates of toolbox have broken something also. all updates dont have to be good updates. maybe try an older versrion?