FAT32 File Size Limit

I replaced my PS3 HD (40GB) recently with a 500GB HD. That went fine. I used the old PS3 HD and bought an external enclosure so I could use it to transfer file from my PC to my PS3. Thus I had to format it to FAT32 since that is what PS3 reads. However, I run into that pesky wall saying I ran out of disk space which I'm assuming is the 4GB limitation. I'd like to keep it FAT32 so my PS3 can read it but utilize the full 40GB. Is there a way? Thanks in advance.