There is a way to trick WinXP into using FAT32 Partitions bigger then 32GB. I have been using a 60GB partition on WinXP for over 4 months now and I have not had a single problem. Here is how you do it.

1 get a Win98 boot disk
2 boot from boot disk and run Fdisk
3 partition the drive to what size you want up to 120GB
4 reboot the computer off of the Win98 boot disk
5 format the drive
6 boot the computer off of the WinXP CD
7 proceed to install the WinXP.
8 When WinXP ask you what partition to install to choose the disk you just formatted it will give you an several option dealing with NTFS don't pay them any mind and choose the last option which is to install WinXP to current drive without making any changes. Windows XP will proceed to install normally and you will have WinXP installed to a fully functional FAT32 Partition greater then 32GB.

WinXP can use larger then 32GB partitions M$ intentionally limited the Fdisk portion WinXP to push people to the Realm of NTFS.