Hi! I recently purchased a 750GB external USB HD. I plan to use it as a primary storage device for movies/music/isos etc. While I prefer to use NTFS for a variety of reasons (my computers run Vista and Ubuntu), I would also like to play movies off of the drive via my PS3, which only recognizes FAT32. I was wondering if setting up this external drive with a relatively small (~50GB) FAT32 partition for the purpose of using it with my PS3 is a viable solution so that I can have the best of both worlds in one drive? Are there any problems or downsides to this approach? I appreciate the help!

No, the only down side is the PS3 won't read your NTFS partition. I'd make the FAT32 drive at least 100gb considering movies on a hard drive will eat up 50gb fast.