Yeah, like uid=[0] says, you can use a FAT32 drive in slave for like programs and that if need be.
What you can't do however, is run like Windows 98 on one drive, and have an NTFS partitioned drive running as slave. it just won't see it.
Thats a problem I had, when my sister still had Windows ME, on FAT32 and me and my brother both had XP.