Here's a link from Microsoft that discusses the limits of FAT hard drives:

http://www.microsoft.com/resources/documentation/Windows/XP/all/reskit/en-us/Default.asp?url=/resources/documentation/Windows/XP/all/reskit/en-us/prkc_fil_tdrn.asp

FAT32 has a 4GB file size limit, not a 2GB limit. There is a 2GB limit that pertains to video, but that's an AVI format limitation. The original AVI specification was limited to a 2GB file size, but that has pretty much gone away. Newer programs use the newer file header (called OpenDML) which was released in 1996. That's where the 2GB/4GB confusion comes from.