I'd really think twice before attempting to convert your file system with Partition Magic. It's one of those 'iffy' programs. It either works okay, and does what it's supposed to do, or it doesn't and you find yourself weeping in the corner.
 
AFAIK, the only way to convert NTFS to FAT32 successfully, is to do a destructive format of your partition which will, of course, wipe out any files on that partition.
 
There may or may not be any shareware or freeware utilities out on the web to do it without the necessity of doing a destructive format, but I doubt there would be many for the NTFS5 file system, which is the one Win2K uses.
 
What you might be able to do, assuming you've got several partitions and enough room to move files around, is clear one partition (not your primary partition) of all your data files, format it to FAT32, and move all your data files back to it. You'd end up having to format your primary partition and reinstall Win2K and your programs, but it might be the least painful and safest way of getting the job done.
 
Not a fun chore ahead of you.
 
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"This year will go down in history. For the first time, a civilized nation has full gun registration. Our streets will be safer, our police more efficient, and the world will follow our lead into the future!" -Adolph Hitler, 1935

u must have the LATEST program of partiton magic- it's compatible with win2k
 
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2 Computers (networked)both have :
 
Intel SE440BX2
Pentium III 700Mhz (100)
LS-120 120 Mb (100MHz)
Fujitsu 17.3 GB Ultra DMA 66/10.2 GB Ultra DMA 66
Mitsubihi 50X IDE
Creative Vibra PCI 128bit
Matrox Millenium G400 16Mb AGP/Diamond Speedstar 8Mb AGP
Bay Netgear 10/100PCI
Medium ATX Tower case
120W Multimedia
MS INternet KB (PS2)
MS Win2000 Pro

I kinda agree with Deadcat's method and would just move data to the other drive (if there is one of course). Otherwise, there aren't really any process to undo a Fat NTFS and to change it to Fat 32.