Heres my situation,
I have been using XP for a while now with a 250GB HD. I had 40GB for C and about 190-something for D (which is where I kept all my data). Recently I have re-installed SuSe on my computer and have a dual-boot going. When I setup SuSe I gave it 50GB from the D drive. So now I've got about 70GB of free space floating around.
I want to use this space as a swap drive between SuSe and Windows.

Heres my problem,
I cant figure out how to format that chunk of space to FAT32. Windows can see it with the Disk Management tool but my only option is NTFS. I try to use the YaST Partition tool but it doesnt even see that chunk of space.
So I checked some forums and heard about QTParted, but apparently I can't get it for SuSe. So I tried cfdisk and when I type the command 'cfdisk hda' I get this error: 56;24HFATAL ERROR: Cannot open disk drive57;28HPress any key to exit fdisk

So now I'm kind of lost. I've searched on Google and in forums and I have a lot of usefull information about formatting your whole harddrive and repartitioning the whole thing, but nothing that really suits my needs.

Any help would be appreciated.

Windows XP is limited to creating and formating a FAT32 parition up to 32GB.
Have you created a partition from this free space?
You can use either fdisk, cfdisk or qtparted to create the partition.
The correct syntax is:
cfdisk /dev/hda

To format it use:
mkdosfs -F 32 /dev/hdax (Where x is the partition number)

Well it actually gives me that error no matter what I put in there.

But how would I know the partition number if I cant see it in Linux?

Look at the output of the command
fdisk -l (that is a small L and you have to be root)

It will show you all drives and how they are partitioned. Your drive may not be device hda.