Acronis copying XP files to FAT32 drive, then to Win 7

I tried copying over 100 GB of files from an Acronis backup of my Win XP desktop installation, mostly My Documents items, to a benign folder in My Documents on Win 7 and I'm running into interminable permissions errors. There's hundreds of Access Denied Errors, You don't have permission; even when I am changing the permissions to myself. I am the only user on this Win 7 machine after a clean install. I don't know how to Superuser myself any further to make this work. My Word documents don't have permission, my html documents don't have permission (and some of those will never flip over to me no matter what!). I've used that Take Ownership program and even that can't get the worst of the worst!

So I was wondering, for files under 4 GB (ie. no long video files), should I copy my Acronis backup to a 500 GB FAT32 external drive that is connected to my Win 7 machine, then copy those files back into My Documents on Windows 7 to erase this permission problem?

As for the folders that were already copied corruptively. I've been told to get Puppy Linux and try to erase the offending folders from that OS. I think I'm debating whether to go with Puppy Arcade or Fatdog64, either OS from a USB stick since I've heard partitioning from Linux causes Windows 7 even more problems. I haven't booted Linux since 2006, so I really don't know Linux. It was primitive then, looks primitive now I guess.

As for folders over 4GB, is there a FAT 32 limit? I've got a lot of folders in the 23 GB range now, ready to burn to Blu-Ray.

And how do I copy video files over 4 GB to Win 7?

I've got external drives that I'm totally afraid to hook up to a Windows 7 machine now unless it is in Acronis backup form, or on this expendable FAT32 500 GB drive. Can I hook up an XP external drive to my Win 7 machine, use Acronis True Image Home Plus Pack 11 to make a backup of that external XP drive immediately to another external NTFS hard drive then mount that image, copy files to a FAT 32 external drive from the mounted image, then copy the folders from the FAT 32 drive to My Documents on Windows 7, then make another Acronis backup from Windows 7? I'm using Windows 7 Home Premium, so I'm a little duff about .VHD files.

I am ruing NTFS more & more every day that I'm on this Windows 7 machine, and it's only been 3 weeks.

One other option I have is to get Virtual PC from M$, find the Staples retail copy of Win XP I bought 5 years ago but haven't yet opened, install that, and copy all the Acronis Win XP files over to my Virtual Win XP PC in Windows 7 to sidestep the Windows 7 permission errors.

I may have bought the Home Premium version of XP, and my desktop is XP Pro; hope that isn't another permissions fight.