Without a firmware update your PS3 needs it to be fat32 as you've noticed, and without the use of a utility Windows will not let you format a 1tb using fat32
You're best be it to download a program called SwissKnife, it's a utility that will allow you to format the drive the way you want
WARNING: Before using SwissKnife to format the drive, you have to take all the target="_blank">http://download.cnet.com/CompuApps-SwissKnife-V3/3000-2248_4-10070864.html
Answers & Comments
Without a firmware update your PS3 needs it to be fat32 as you've noticed, and without the use of a utility Windows will not let you format a 1tb using fat32
You're best be it to download a program called SwissKnife, it's a utility that will allow you to format the drive the way you want
WARNING: Before using SwissKnife to format the drive, you have to take all the target="_blank">http://download.cnet.com/CompuApps-SwissKnife-V3/3000-2248_4-10070864.html