File Allocation Table 32. FAT32 was introduced with Windows 95. It is the standard file system used in Windows 95/98/Me. The theoretical Maximum partition size for the FAT32 file system is 8 Terabytes. However, in Windows 95 and 98 the size is limited to 127.53GB because to the disk 16-bit disk utilities included with the operating systems. Windows 2000 and later operating systems should be able to support the theoretical maximum size of FAT32, but Microsoft has placed an artificial limit which only allows formatting up to 32GB volumes on Windows 2000 and XP. The Maximum file size that can exist on a FAT32 formatted partition is 4GB. This has become a major factor in rendering the FAT32 file system obsolete for use on a personal computer hard drive. Media files can easily exceed this maximum size. FAT32 does not natively support alternate data streams or file permissions and it is not a journaling file system.