ntfs is suppose to be more stable ,also you can create larger files with it than fat32 up to 2gig if i remember what i read awhile back
you can just enable large drive support when creating the partitons to work with more than 2GB's, though XP doesnt run as nice as it does on NTFS, my moms computer was XP on FAT32, just didnt run nearly as good as when we converted the drive to NTFS....
though this persons problems seems to be somthing driver related.
At what point does it go black, does it happen after a certain ammount of time, or at a certain point.
If its at the same point each time, it could be the point at which it switches from the SVGA drivers to the actual card drivers,
in which case you need to swap drivers (for working ones),
if it happens after an ammount of time at different points, it could be card related
you could try switching the video card for another one, just to run a test.
I had a card that did this in both safe and normal mode, and it turned out that the card had just basicly died.