FAT32? Really?
Yup. My brand new Acer notebook came from the factory with a 50/50 split of two FAT32 partitions. One was the boot/system partition and the other was the system restore partition.
I used Partition Magic to wipe out the restore partition, after creating the recovery DVDs, and to resize the Windows partition to the full drive. I then used the Windows CONVERT command to convert it to NTFS. That made a huge difference, as did uninstalling all the preloaded Acer applications and services. It's actually a decent notebook now. ...as long as I don't ever get a bad spyware infection. :-(