What format for my external drive allows use with Mac and Windows?

I got an external hard disk (1 tr) and i want to used it for my windows and mac, i read i can have two partitions one for mac and one for windows, but i dont really want to have two parts, and I read i can format it by fat32 and i can write and read on both os, is that true?
I want to use it for movies, os backups, and files..
Is it true that i can only save files up to 4 GB when the format is fat32?
please advise..

It this case you would need to to go to "Disk Utility" on mac and select 3 partions which will be under the Parition Layout in my screen shot below. "Current" is grayed out that will drop down select 3 partitions and make one NTFS, second Mac OS Extended, third FAT32. Using the FAT32 for both Mac and Windows but the files have to be under 4GB each.

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    I still do not know which format would be the best. That is so that I can use it easily between mac OSX and windows. Is FAT32 the only true option? How limited is it? I heard it is limited to 4GB file size for windows and 32 GB for Mac. Are there other sources I have not found with more concrete information on the limitations of this format?
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