So. I figured out my probem
For those who haven’t been following from the steam opinion pole thread on the main sf4 page, I have a macbook pro with xp sp3 through bootcamp. XP was using fat32 instead of ntfs. I originally wanted to know if the 4 gig file size limit would still let me download games through steam.
NO you cannot use steam if you have a fat32 formatted HD / file system. Steam downloads will crash (read that from the steam forums).
Yes you can format your existing partition to ntfs without a format.
I decided to redo my partition so I could have more disc space too.
Here are the links I used:
How to format from fat32 to ntfs:
How to resize your partition, convert to ntfs, not lose any data:
this guy was also removing his hd, and replacing it with a new one - skip those steps.