TopHat2,
I don't know, but I don't think there's any reason not to use the DOS 7 on a FAT32 partition, unless you intend to multi-boot into a Windows NT OS, which cannot read FAT32. I got my multi-boot ideas from a site that explained how to set up DOS6.22, Windows98 and WindowsNT on one system. XP can read FAT32, so if you don't have WindowsNT you're probably good to go with DOS 7 on FAT32. (Except, I can't compare DOS6.22 with DOS7. How complete is your DOS7 installation? Is it compatible with all legacy applications you may ever wish to experiment with?)
Regarding the pagefile partition on the OS drive, my recommendation is this: put it on the next-LOWER adjacent partition to the OS partition. This is because the OS will occupy the lowest portion of the OS partition. If the pagefile is located at the top of the next lower partition, the OS and pagefile will be close together, minimizing the head movement for pagefile R/W. Create a pagefile partition that is about 4.1GB, and then create an OS partition that is large enough for the OS and its default pagefile ABOVE it (I have a 3.5 GB OS partition, which, with the other things elsewhere, is more than enough. I only use about 1.9GB of the OS partiton with XP-SP1.). A 4.1GB pagefile partition will cover the largest needed pagefile with a tiny bit of headroom. Then, after you install the OS, before you begin much using it, determine how much pagefile you will need based on system memory, etc. Then, say for example you want to set a fixed pagefile of 2GB: create a dummy file of some kind that is 2GB large. Copy that file to the empty pagefile partition. It will reside in the bottom half of the partition. Set it to read-only to prevent accidental erasure. Then go into the Control Panel and set up a fixed 2GB pagefile (or variable from 750MG to 2GB, or whatever) on the pagefile partition. Keep a small, fixed pagefile on the OS partition for crash logging, say about 50MB. In this case you may wish to set the crash logging to its minimal configuration. (I use 72MB.) then, after rebooting, the system will create a 2GB pagefile on the pagefile partition, and voila! It will sit right next to the OS! If you only want a 1GB pagefile, first put a 3GB dummy file in the clean pagefile partition. The only purpose for the dummy file is to cause the pagefile to reside as close to the OS as possible. If you add memory later and decide you need a 4GB pagefile (I wouldn't ever set the pagefile larger) then you can disable the pagefile on the pagefile partition, reboot, delete the dummy file, and then create a new 4GB pagefile. This way, the pagefile is always as close (or closer) to the OS files as it could ever otherwise be while residing in the OS partition, except that it will never fragment the OS nor interfere with making a backup!
--torandson