won't windows disk management do it? (start, diskmgmt.msc)
edit: just checked. nope. you could create the partition and assign it a drive letter. then try formatting it from a command prompt..
format x: /q /fs:fat32
(where x: is your drive letter)
Or just diskpart.
format fs=fat32 quick
(list and select the disk first)
if you use diskpart, you need to select the disk first eg
select disk 0
(use "list disk" to find out the number)
select disk 1
clean
create partition primary
select partition 1
format fs=fat32 quick
The reason windows does not allow Fat32 to have filesystems greater than 32GB is because the bigger the FAT filesystem the slower it performs. So MS locked the filesystem to 32GB as they deemed performance for filesystems greater than that as simply unacceptable.