With fdformat (
http://www.simtel.net/pub/pd/44251.html) you can format PC disks at 820kB, which should help you a little. Fdformat is best used in pure DOS mode, so it might not work if you're using W2k/XP, but give it shot. There's also a shell program for fdformat, which I haven't tried (
http://www.simtel.net/pub/pd/44250.html).
For file split/joining, I use ARJ (
http://www.arjsoftware.com/), because its system of splitting files on several disks is better than Winzip's, IMO. Unfortunately, the Amiga version of UnArj doesn't support joining files when unpacking, so it must be done by hand. Maybe some GUI solves that, I haven't really looked very hard...
/Martin