Hey everyone, maybe my satisfactory experience of the same "please format disk" issue might help somebody.
So here's my story. Got mine Kobo H2O today and then tried to connect it to my PC running on Windows, and, of course, saw the "please format bla bla bla" message. My shot in the dark was an attempt of connecting the e-reader on Linux Ubuntu. And it was a complete success: besides the fact that Linux was able to see the e-reader disk storage and I could copy books onto it, after this the device began to work flawlessly even on Windows. It seems that Linux has fixed the storage, moving bad sectors out.
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