Yes, why can't I?
I was stashing away some old photography backup zips last night. I could copy 4 of my > 1 GB backup zips to my external USB connected hard-drive when I got the error message "Cannot copy file. Not enough free space." (sort of) for a zip of roughly 7 GB.
But there are 120 GB free. Why is this?
EDIT: Clarification - the files that I could copy was smaller than 4 GB. The failing one was 7 GB. The cause seems to be the FAT32 4 GB limit.