hey R1VEN,
get a program called EASEUS Partition Manager.
Pretty sure the Home Edition is free and it will let you format a drive in whatever format you want.
Windows XP only lets you format drives into NTFS through the Disk Manager.
Just grab that program, plug in your drive, format to FAT32 and blam.
Copy over your files and select Triangle - View All when you go to the HDD and you should see all content in your selected type (video, music, pics)
I personally stream from my PC using Java PS3 Media Server... you just need your PC and PS3 both plugged into a router and it should work.
Really easy to setup, no more copying files to an external HDD and it can even convert formats on the fly that the PS3 doesn't support, such as MKV or MOV.
If your PS3 is plugged into the same router your PC is then don't even hesitate to try it. Much easier than an external HDD.
Fallout 3
1 day / Brisbane, Queensland