Can Windows XP recognize any size HD?

[essential]

I want to upgrade an old PC in my house, and a Gateway tech told me the max hard drive I could put in can be a 200gig. This doesn't make sense to me since it's a Windows XP machine. Can't Windows XP recognize any size HD since it's an NFTS format system? I thought only FAT32 had restrictions and could only read up to a certain size. Confused, any information would help.

 

[bsobel]

You need at least SP1 to see drives larger than 137gig, further your drives interface must be able to handle the larger drive (that may be the limitation the Gateway machine has, although it's likely you could add a PCI controller card to bypass any onboard limitations)