|If a partition is larger than 32gb, XP uses NTFS partitioning - you don't have any other choice.|
The reason for that is Microsoft deliberately did that because it considers using FAT32 for a partition larger than that more wasteful of disk space regarding the slack space that can't be used to store data, but if most of your files on a partition are large, there is little difference between using FAT32 and NTFS partitioning regarding slack space used up.
If you want to use FAT32 partitioning for a partion larger than 32gb, you have to use ME's Fdisk, or 98SE's or 98's updated Fdisk (the original version has bugs - it can't partition a partition larger than 64gb), or a freeeware Dos's Fdisk, or some third party program such as a free hard drive manufacturer's disk preparation program - XP will recognize that FAT32 partition fine.
If a partition is smaller than 32gb, in XP, you have the choice of FAT32 or NTFS partitioning.
If it's 2.1 gb or smaller, you have the choice of FAT32 or FAT partitioning.
It's not recommended for you to use NTFS partitioning for any partition 4gb or smaller on anything.