Why can't I copy a custom install.wim file onto a bootable USB, too big?

By ddalbon ·
I am trying to create a custom image to deploy to laptops. I have created a non-sysprep image to just practice with the imaging process for Windows 7 Enterprise 64 bit. When I format the USB with FAT32, it get the message the install.wim is too big to install. I can do it with NTFS only. The USB drives I have tried were 8 and 16 GB, the install.wim is under 5gb.

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