I have a 60GB drive which I want to format, when I try to fdisk and format in the normal way it only seems to see 32 GB of it. I think this is something to do with FAT 32. Can someone please advise me how do I flatten and the reformat this drive to use the full 60GB
The problem you have is almost certainly that your system does not support drives larger than 32Gb (it could be a capacity limiting jumper - but this would be unusual to be fitted to a new drive, unless you have fitted it yourself!)
There are three ways around the BIOS 32Gb limit
An update to the BIOS (if there is one)
Use the drive manufacturers utility which overcomes the limitation (eg - Seagate Disk Wizard)
Buy a plug-in PCI IDE card, which has it's own BIOS without such a limit.
It's not a FAT32 issue - FAT32 can handle much larger partitions.
It's clearly not a Win2000/XP issue - as FDISK itself does not exhibit this issue.