There are many cases where you need a FAT32 drive. For example, I had to reformat my HDD in FAT32 for transferring files to my PS3.
You can format your drive (HDD, usb etc) easily by using the mkfs utility. But before you issue the mkfs command you need to verify that your system supports FAT32. Open your terminal and type:
If the output contains vfat, you can proceed. Now issue the following command:
sudo mkfs.vfat -n