from my research, the 32Gb limit is only related to Windows XP. But if you have Windows XP+ your HDD's should be formated in NTFS anyways, it's a way more efficient file system (in windows anyways).
If you have an older version of windows, the you should be good upto 127gb.
Here is one of the links that I am basing my coments from:
http://en.wikipedia.org/wiki/FAT32.
hope this helps.