Aha! Eureka... I found it! Ok... the answer to this problem atleast, maybe to others involving this in some way shape or form....
With explorer open, click on the organize button, drop down to folder and search options, (old folder options box) under general tab, navigation pane options, checkmark "show all folders" and apply.... voila, now both NTFS and FAT32 drives now show up in the navigation menu and right click - send to menu
This also showed networked/mapped shares/drives from another pc (win7x86). Before it wouldnt show these either in the navi