FAT32 and NTFS are both hard drive file systems. FAT32 was designed to be universal (usable by any type of computer) but it is also rather old and one of the disadvantages is that it cannot store files greater than 4GB. NTFS was designed by Microsoft and so is used primarily by Windows. For along time other operating systems could not use it, but now Mac can read it, and even write with certain mods, and apparently Linux can also.
As for what to do, you will need to create an NTFS partition on your drive. I assume right now it is just one partition, so firstly you will need to free up some space, then shrink the FAT32 partition, then create the new NTFS partition with that free space.
To do this, press the vista button, then search msconfig. Open it, then click on drive management, and you should see your drive. Then right click (make sure it's the correct drive) and select shrink volume however much you want to shrink it. After it's done, right click on the unallocated space and right click, then select create new partition, and be sure it is NTFS. Then you should be good to go.
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