Not seeing Fat32 option to reformat?

Hey guys,
imac 7.1
Intel core 2 duo
2 ghz
4gb ram
Serial Number: W873478TX85
I need to first backup the data on this unit then install whatever latest software it can take as it has OSX 10.4.11 on it.
this is a Seagate external drive, I wish to first format it for BOTH mac and pc but under the ERASE tab, the Volume Format option only shows 4 Mac OS Extended options, what can I do here to get the Fat32 option please?

Hmmm, are you selecting the whole drive on top of the Partition?
Here's from 10.4.11 on PPC Mac...

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