Live USB partitioning

Ok, first, I am new to Linux, and trying out live USB boot to try and learn it without demolishing my windows system. I am trying to run netrunner 13.12 as a live usb. I have installed the 64bit ISO to a 32Gb usb drive, and it boots fine. Unfortunately, the DVD ISO registers as 0 space remaining. Is there a way I can re-partition the drive to enable a live USB fully capable? or does this need to be installed onto the HD for partitioning? Thank you in advance.

You want to use the fat32 part of the usb stick as normal thumbdrive ? Or do you want a persistent Live USB System ?

I would like to use tthe remaining portion as storage space for the Netrunner OS. I.e. use as a persistent live USB.

You can try the usb creator shipped with netrunner.
Otherwise if you have access to your fat32 portion of the usb stick create an empty file called casper-rw and format it with an linux filesystem like ext2.

The commands for that would be

sudo dd if=/dev/zero of=casper-rw bs=1M count=1000
This would create an 1 GB file. (Note: 4 GB limit on fat32 for one file)
Formatting it to ext2 can be done with this command

sudo mkfs.ext2 casper-rw

When you have your casper-rw just put it on the root of your usb stick and before booting of the usb live system add the bootoption persistent. (Either manually by pressing tab on bootmenu or by editing syslinux.cfg if you are using this as boot manager from usb)