[BipolarBill]

Since nothing is actually on the 3rd partition, use Disk Management to delete it and recreate it. As a matter of fact, you can do this in Windows Setup. When you get to the part where setup asks where you want to to install, read the prompts and delete the 3rd partition. You will then see unallocated space. Create a new partition there and install.

You can convert to NTFS anytime in Windows.

Converting FAT32 to NTFS in Windows XP