NTFS is much better. FAT32 is plagued by performance degradation with larger hard drives and is highly inefficient with large partitions. With a 40 GB hard drive, FAT32 clusters are 32 KB and with NTFS it is 4 KB. Then there is stuff like security, etc. that is missing in FAT32.
Honestly, the only reason I would tell you to use FAT32 is if you have a dual-boot configuration with the old Windows 9x/ME family, which doesn't recognize NTFS formatted drives.
EP, glad to see you come back and tidy up...did want to ask a one day favor, I want to enhance my resume , was hoping you could make me administrator for a day, if so, take me right off since I won't be here to do anything, and don't know the slightest about the board, but it would be nice putting "served administrator osnn", if can do, THANKS