Basically, I think you have to partition your drive into several smaller logical drives. It's a limitation with Microsoft, not Sony.

Most of these will also partition it for you.

Partitioning Tools-->
Free:
Gparted LiveCD
Parted Magic
XP Recovery Console CD image (Create and delete partitions with diskpart.exe)
Partition Logic
Ranish Partition Manager
Cute Partition Manager

Shareware:
Paragon Partition Manager
Paragon Hard Disk Manager
Terabyte BootIt NG
Acronis Disk Director
V-Com (Avanquest) Partition Commander
EASEUS Partition Manager
7Tools Partition Manager
Spotmau Partition Genius

This is a good article:
http://www.avforums.com/forums/ps3/909455-ps3-backup-utility-external-hard-drive-format-fat32-process.html

HTH, good luck.

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