LOL, I think some flash drives have troubles with things that exceed 4GBs, though I don't know the specifics of it. I just know I have heard of people having similar issues with flash drives before, but I think that was related to having a single file that was that large, not a folder with multiple files.
My suggestion was more to map a drive on your network from one PC to another and copy it over through your network. It should work fine that way.
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