How to create a FAT32 partition
To utilize FAT32 you must be running Windows 95 OSR2, Windows 98, Windows 2000, Windows XP or above.
Note: When creating a FAT32 partition you need to delete the pre-existing partition and then create the FAT32 partition. If you don't want to delete the data on the partition, you can convert the existing filesystem to FAT32 using a utility such as Partition Magic. Or, if you are running Windows 98, you can use the convert utility located under Start, Programs, Accessories, and then System Tools.
Once you are ready to create the partition, if a partition already exists, delete the partition.
Once no partitions are present on the computer, exit fdisk. Once back at the MS-DOS prompt, type fdisk to enter fdisk once again. The first fdisk screen should prompt about enabling large disk support, clicking YES to this enables large disk support (FAT32). Once back in the fdisk main menu, create a primary partition.