Installing Windows XP on a FAT32 Partition Larger than 32 GB

We always recommend that Windows XP users format their disks in NTFS for better
performance and reliability, unless there’s a compelling reason not to
(for example, dual booting with an operating system that doesn’t
recognize NTFS). However, if you do want to use FAT32 for your XP
installation, you need to be aware that XP’s partitioning utility only
lets you create FAT32 partitions up to 32GB in size. Here’s a trick to
use if you want to install XP on a larger FAT32 partition:

1. Use a Windows 98 boot disk to start the computer.
2. Run FDISK from the boot disk. You can create partitions up to 120GB.
3. Reboot from the boot disk.
4. Format the partition in FAT32.
5. Now remove the boot disk and insert the Windows XP installation CD.
6. Boot from the CD and install XP.
7. Select the option to install XP to the current drive without making changes.

Now you will have Windows XP installed on a partition larger than 32GB.