VMS will not break up the output file.
It will (probably) just give some error message and then stop rendering.
Remember, however, that it is very easy - and 99,9% risk free - :-) - to convert to NTFS using Windows own tools for that.
I might convert to NTFS on that one drive (there are 9 drives on this machine). I'm a fanatic about being able to recover damaged material (including piecing together lost files from bits & pieces), and my recovery experience is exclusively with FAT16 and FAT32 formats.
Actually it will break up the file if rendering to DV or uncompressed AVI.
Rendering to MPEG can cause some major headaches. Vegas keeps updating the file size in the directory, but the OS runs out of places to store the data. I ended up having to run scandisk on the drive afterwards to fix it when i attempted rendering a 6GB MPEG file to a FAT32 drive.
Thanks much for the warning as well. I converted that drive to NTFS -- fast and indeed painless. It's halfway through rendering the MPEG2 now, so I trust all will be well.
Once more thanks to everyone on this fantastic forum ... I've never been misguided by advice here!