so it says........
FAT16 supports partitions up to 4 GB in size, while FAT32 supports partitions up to 2047 GB. However, Windows 2000 FAT32 implementations are limited to creating 32-GB volumes, although existing FAT32 volumes greater than 32 GB can be mounted. Except for this partition-formatting limit, the FAT32 on-disk format and features are the same on Windows 2000 as they are on Windows 95 OSR2 and Windows 98.
I'd convert it to NTFS...........
Windows XP Professional provides the Convert command for converting a partition to NTFS without reformatting the partition and losing all the information on the partition. To use the Convert command, click Start, click Run, type cmd in the Open text box, and then click OK. This opens a command prompt, which you use to request the Convert command.
Convert volume /FS:NTFS /V
Volume = Specifies the drive letter (followed by a colon), volume mount point, or volume name that you want to convert
/FS:NTFS =Specifies converting the volume to NTFS
/V =Runs the Convert command in verbose mode
and after yes, will still be stuck with same size, partition magic will do the trick. a must have tool fo rthe pc builder/repairer
of course you could have used disk manager and just made a second partition