Such a large drive has issues with those OSes without service packs. The level of SP is very important on both but let me forewarn you that I see too many FAT32 drive volumes vaporize as owners move between machines. From my view there is no solid fix to this but NTFS does appear to help.
http://www.48bitlba.com notes the issues of OS and more.
Your later comment appears to say you are considering this as a storage device. Why would you risk your collection to a known bad combo of FAT32 and USB?
Bob
I recently purchased a 500GB external USB 2.0 drive. It came pre-formatted as 1 huge FAT32 partition which came up fine under WinXP Pro. (I am doubtful that files on such a drive would be accessed properly, due to past experience and MS's imposed FAT32 32GB limit.)
I fiddled around a bit and got the drive to mount properly under Win98SE (even though the manual says Win98SE is not supported) so that I could use FDISK and FORMAT.
Being a PC Tech with many clients on mixed platforms, I set-up a dual-boot Win98SE and Win2k Pro with various SpyWare and Antivirus scanners in the 32GB Primary partition so that I can boot 'clean' should the need arise.
It was my hope to put MP3's from my CD collection on the other 460GB+ partion to use with my laptop when I DJ parties so that I don't have to make any more mix CD's or lug so much stuff around.
Well, the 32GB primary partition comes up fine on WinXP Pro... However, the Logical Drive in the Extended partition does not. It shows 'Healthy' but not 'On-line' in DiskManagement; when I attempt to access it, it prompts me to format it as NTFS.
Why can't WinXP access the Logical Drive in the Extended partition properly?
How should I proceed:
1. Break the large Logical Drive in the Extended partition into 4 drives < 137GB? (Will WinXP and Win2K be able to properly access them then?)
2. Format the drive in NTFS and use the Win98 NTFS reader from MS's SysInternals should I need to access the partition from Win98SE?
3. Some other course of action that I haven't considered?
Thanks in advance for your help!

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