Personally, I never believe Palm's pathetic, cowardly and innacurate information.
An example, on my Tungsten T3, I have been using a 1gb card for over a year. When I purchased the card, Palm Inc said that they were NOT supporting anything over 256mg. However, the SD card vendor did send me a link to a post which showed me how to re-format the 1gb card. No problems with my aDATA SD card since.
You are correct about FAT32 driver should support up to 32GB, which is the highest SD level that I have seen posted on the official SD standards site.
But with Palm, you never know. They might stick some propriatary item in the driver, or have a bug in it and then NOT send out a patch for it.
I am of the belief that Palm executive management is penny wise and dollar foolish and are totally out for their own personal profit and will strip whatever they can from the company.
I believe the future of Palm is certianly NOT Palm Inc, but is with ACCESS and their ownership of Palm OS. They should be the ones to respond and post patchs, etc to Palm OS to help us all.
I also am on the optomistic side knowing the Korean firm LG electronics that is coming on hot and heavy with very high quality and innovative product. Also great appliances. For example, I recently purchased a LG dishwasher that is of extreme quality. Get this, NO BELTS in it and nothing to purchase for ongoing maintenance.
LG's inventory is never the least expensive, but is always of the top edge of quality.
I am anxious to see what they do with Palm OS.
Jon