Just for furthure refrence, what exactly is the diffrence between NTFS & FAT systems?
FAT is an older filesystem that has 2 versions
FAT16 and FAT32
Windows XP can use Fat32.
However if your going to be installing XP i recomend you use NTFS, which is a much better FS overall, as it adds alot of secutiry that FAT does not have.
According to MS NTFS is better in just about every way. Particularly it addresses large hard drives more efficiently. And that was back when a large hard drive was 1 Gig! It's more secure and has more options. So unless you are dual booting with an OS that doesn't read NTFS you should use it.
WoW! thats a lot of replies! Thanks everyone! (now I can pretend know more).
TO add to Catweazle's link, here's another:
Note that there are different versions of NTFS itself, and not all of those versions are compatible with each other.