Yes Gparted is able to create FAT32 partitions up to 2TB (which is FAT32 limit)

The only problem with FAT32 is that you can not have files over 4GB, which is a problem sometimes...

But I guess FAT32 is required for an external drive that will connect to a *nix/*nux sytem, or a mac or a PS3 (*nux like... if I'm correct)