I'm not certain, but I do know that I used TOKIWA's FAT32Formatter
to format several external hard drives. I have two 2TB drives (one seagate, one Lacie) that are displaying the same results on different XP PCs.
I first noted the issue two weeks ago after lending my spare external drive to a friend and it wouldn't display on either of his XP machines. I assumed, ignorantly, that the USB ports or some drivers had gone corrupt since both machines were running in poor states. But I just set up a triple boot Ubuntu-XP-Windows 7 machine and two other XP re-installs for some clients, each separate legitimate copies from their purchase or through my company. All machines so far with XP failed to see the externals properly, but always the same partition table, file system, and exaggerated capacity issues
For the last year I've used it for music and such on all my gaming systems (PS3, Wii, and Xbox which requires drives to be fat32) and for my files. I suppose I just haven't ever plugged any of the externals that I've formatted into an XP machine before these last few weeks and I'm just noticing that XP has no clue what it's looking at.
I can still use my external on my xbox and other pc's, however, the 5 XP machines I've recently imaged or at my friends will not take to either drive.