|Go to Disk Management and view the information for that disk. If you only have two hard drives it should be listed as Disk 1. |
I believe you will see a partition of 1.99GB and un-partitioned space for the remainder.
Delete the 1.99GB partition. Now it will show the full capacity as un-partitioned space. Partition using all available space. Then format.
If you NEED FAT32 for some reason you will either need to divide the drive or use a third party partitioning tool.
WinXP will not format partitions larger than 32GB using FAT32.
Hope this helps.