Actually, Microsoft limited FAT32 partition size to 32GB for WinXP, but WinxP supports FAT32 partitions larger than 32GB created by other OS or tools.....
So, if u create the partitions using the fdisk utilty provided in the WinXP CD itself, u will be limited to 32GB max size.....but u can create partitions greater than that,the thing is, u have to use "fdisk" of Win98 (or win98 bootable floppy),and then u can WinXP install in this big partition...