It will work. You don't need to use partitionmagic to convert, just open command prompt and type
convert c: /fs:ntfs
then answer y to get it converted at next reboot.
However I would back up all data beforehand. I have never had a FAT32 to NTFS conversion fail, but this is a system configuration change and it is better to be safe than sorry.
4k clusters is the conversion default under XP.
(And most other OS)
Using larger cluster sizes is only recommended for applications with large databases.
Leave it to the default of 4k.
There are many utilities that will choke on a larger cluster size.
Note: Most people use PM if they want custom LARGE cluster sizes, not because they want 4k.
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