P.S. Finally figured out how to get music files to a USB stick on my BDP-1. The BDP-1 player was hiding in Workgroups and I guess I never saw it. The process is so easy and now I figured it out I will change a 1TB external USB HD from NTFS to FAT32. Being a new one that I purchased on sale way back it has nothing on it to lose when I change the file system to FAT32.

You asked and answered your own question before I even had a chance to read it...
There is another factor that should be considered, as was published in the latest copy of HiFi News: Don't leave unused drives/sticks connected as this can decrease the sound quality. In this case it refers to higher levels of digital jitter, I won't scan/post the full article here as I might infringe some rules, but here is the jitter plot, with the Red element representing an unused but still connected USB drive.

I'm not sure if these "timing issues" will be audible at <-90db, but to ensure optimum sound quality (which is why we're buying these things, after all), its probably better to disconnect unused USB devices. I'll stick to my single 1TB drive, rather than multiple smaller devices.
There should be no impact on sound quality with the BDP-1 due to the way it uses the drives and reads the data, but why take a chance when its not necessary and why risk the possiblity of introducing noise into a system.
Regards
Russell