Formatting to Fat32 via the LDMS Console is hard coded. I talked to our dev about it once and he said they were looking at switching it but wasn't certain the scope of what it would take for certain actions. (He didn't mention what those certain actions were). As we were discussing in this thread I manually made a disconnected template and formatted the drive as NTFS and it worked. Since it's hard coded there's not a file as an end user that we can change what it tries to format the disk to.