On the contrary, NTFS is faster than FAT32, but you really don't notice the performance degradation until you have a large hard drive that starts filling up. In addition, NTFS is far more cluster efficient. My 40 GB partition has a 4k cluster size (like all NTFS partitions), which would be something like 32k / 64k if I had FAT32.
In short, I hate FAT32, and I'm glad I formatted to NTFS. However, once you switch to NTFS, you won't be able to use that hard drive on any Windows 9x/ME computer, because they don't read NTFS. Barring that, which isn't an issue with most people, I suggest NTFS all the way.
Melon