well as Microsoft has decided to strip fat32 from the formating tool, you do not have much choice to create a fat32 partition anymore. You could use a partition manager, a Linux CD and some others, but nothing comfortable.
Luckily somebody took care of it and wrote a program which does help you in that case.
Attached to this article you will find fat32format which will do the trick:
will format the drive "e" with fat32.