Ghosting smaller to larger

I am trying to ghost 12 GB hard drive with NTFS (Windows 2000) to a 40 GB drive (FAT32) using Ghost 2001. 40 GB works (boots) fine once I remove 12GB from machine, but it uses 12gb for boot (C:) then makes 1 partition on the rest of the drive (D:). I know I’m doing something wrong but FAQ’s on Norton’s site haven’t helped. User wants it to be 1 partition. Do I need to format drive as something else (NTFS)? or use Partition Magic? Any help appreciated.
Thanks,
Allen