NEXSTAR FX - Combatting FAT32

I have recently bought what I thought was the perfect answer for my purposes: The Nexstar FX – it is a small home NAS solution that is tiny and has two USB ports – one for a USB HDD storage and one for a USB Printer. The idea behind this is that I can run a LAN and Power cable to this little box (half the size of a pack of cigarettes) and have a USB hard drive which can be hidden easily behind a cupboard to avoid midnight shoppers from taking my data from home.

This is exactly what it will do for me (and a couple of additional functions I did not count on), BUT there is a limitation that makes it useless:
• You can only have up to 16 users (no problem)
• There can only be 16 Folders (user folders) to access
• The filename / path length is limited because the NAS formats the drive on initialisation to FAT32.

My documents folder has many layers of folders, especially when it comes to web development for a particular client on a particular job….. (get the picture?)

I have looked for firmware updates – they don’t exist!
I have looked for support from Nexstar – none forthcoming!
I have asked every geek I know – no luck!

Perhaps you can assist? I guess that the little box operates an embedded Linux system, with only the required file management components, etc. Is there any way that I can make use of this for backup? The only other use for it would be a very expensive music repository for the household – it will save and serve MP3s to iTunes!

Thanks for the help!
Alain@jacquet.co.za