Maximum partition size using the FAT16 file system in Windows XP
Windows XP supports the creation of primary partitions and logical drives of up to 4 gigabytes (GB) using the FAT16 file system. The maximum cluster size is 64K.
So the answer = yes for Windows XP
If you’re using Vista, here’s a gotcha.
In spite of this knowledge base article, and contrary to what it says on this Vista page, it appears impossible to format a Fat16/32 partition using Vista native GUI tools.
EDIT (25-Apr-07) : This applies to partitions larger than 32 GB in size. The GUI tools will support formatting partitions smaller than 32 GB in size. This is apparently by design. Although the maximum size of a Fat32 partition is ~8 TB, Windows formatting tools will not format large partitions.