You cannot format a volume larger than 32 gigabytes (GB) in size using the FAT32 file system during the Windows XP installation process. Windows XP can mount and support FAT32 volumes larger than 32 GB (subject to the other limits), but you cannot create a FAT32 volume larger than 32 GB by using the Format tool during Setup. If you need to format a volume that is larger than 32 GB, use the NTFS file system to format it. Another option is to start from a Microsoft Windows 98 or Microsoft Windows Millennium Edition (Me) Startup disk and use the Format tool included on the disk.
FAT32format is a small, simple and powerful application that canformat large hard disks in FAT32, even in Windows XP. Just partition the drive, then type "fat32format X:" where X is the partition letter. It is also possible to set the cluster size with a -cN parameter where N is the number of sectors per cluster. On a hard disk, which is the only sort we support, one sector is 512 bytes. The cluster size will be N times 512.