You are correct. This does work. Also, you can create a bigger partition on a win98 system. It only doesn't work in win2000 and XP (I believe)

Win2000 will work great with fat32 partitions greater than 32gig, but won't allow for them to be created.
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Riocar 80gig S/N : 010101580 red
Riocar 80gig (010102106) - backup