If you want to "combine" the two partitions you do need to use partition magic. You can't combine though, you just have to expand into Unallocated Drive Space. PMagic can also only expand towards the end of the disk, so if you have, for example, a 30GB drive, and the partition you want to keep starts at 10GB, you can't expand back to the beginning. (If this has changed in newer PMagics someone please correct me) If your NTFS partition is first, I would just remove the FAT32 partition and expand outwards, and have one big drive. (If I remember right that FAT partition would HAVE to be first to install ME, so you're kinda hosed there.)
Kinda convoluted, but I hope it helps!