Version 1.49.0 has just been released today, with support for FAT32 formatted virtual media, and sizes up to 16GB.
Just a quick update....I don't think I mentioned it before, but Fuse has a max limit of 4GB 32 Bit formatted virtual drives. In the last couple of releases, I have updated the HDFMONKEY version to a more robust version, which seems to be okay (so far) with 4GB 32 Bit formatted virtual drives. I would make a backup just to be sure, but this definitely seems to be working better so far for me.