You're going to run into issues trying to create a big FAT32 partition. I had all kinds of trouble this weekend trying to get an old 120 gig drive going in a firewire box. Plugged it into my ibook (10.2.8) and created a big partition and formatted it. Worked fine on the Mac but my XP machines couldn't read it. (Yes, I chose the right filesystem.) Then I learned that XP won't create a FAT32 partition bigger than 32 gigs. The solution that finally worked was to use Partition Magic to create/format a big 120 gig partition on the drive then put it back in the firewire box. Now all my machines can see it.
MS
claims that Windows ME will create/format a FAT32 partition up to a couple of terabytes but I wasn't really inclined to install it just for that purpose.
And, of course, once you get it working, you'll be limited to files of 2 gigs or less. The theoretical file size limit is 4 gigs but that only works in limited situations. (So don't plan to use the FAT32 drive for video editing.)