Change file system on WINXP

I just upgraded one a laptop on my network to winXP Pro. I have FAT32, basic but I want to change it to NTFS.
This computer has a 24mb partition which i did not created, but I don’t know if it was there before the upgrade or if it was created by win XP.
The problem is that I try to convert it to dynamic and NTFs but I got the message the was not enough space available in one partition to perform the convertion.

What can I do.