the folder should go if it has smaller files in it all less than 4GB in size.
I dragged my 20GB iTunes onto my FAT32 External Drive. You may wonder why I use a FAT32 drive, but it's simple. I could hook it to a mac, to a Pc, and to a Ps3.
Sure I can find a way for the PC to read HFS+, or make the mac read NTFS, however the PS3 has no file system support for anything other than FAT32 and whatever it happens to use.