Reformatting SD Card?

So i got an 8GB SD card for my camera. I have a Kodak EasyShare Z710. When i put in the SD card it tells me it's unusable and asks for a different SD card. I put in a 1 GB SD card and it works fine. I have a mac and i looked and the one that works is formatted to MS-DOS (FAT16) and the one that doesn't work is MS-DOS (FAT32)... when i tried reformatting the one that doesn't work it doesn't give me an option in disk utility for FAT16 or FAT32. i'm pretty sure this is the problem... how do i format it to FAT16?