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Win2000 has a 32GB FAT32 limitation. if your drive is under 32GB, there's no need to use NTFS. if your drive is more than 32GB, you have to use it.
it's a different File Structure than FAT32. NTFS cannot be seen by a FAT32 system, but FAT32 can be seen by an NTFS. NTFS is also noticably slower than FAT32, but it makes better use of larger HDD's. allowing you to use more of your drive.

NTFS also allows for compression which can be almost a 2 to 1 ratio (sometimes doubling the HD space). NTFS has a higher overhead of memory- it uses more than FAT32 on average, but NTFS is more effective.
In my opinion, for stablity, encryption and compression NTFS is superior. However, some games have a hard time running off an NTFS drive. There are dual-boot issues too.
Check this out: http://www.microsoft.com/windowsxp/expertzone/columns/russel/october01.asp
By the way, I'm almost sure that a requirement of NTFS is not 32GB or higher. I've had four different HD with NTFS and all are under 32GB. I think that post is flat out wrong.

NTFS file system allows local security on your machine and allows:
Built in Win2000 file encryption
Built in Win2000 file level security
Built in Win2000 compression down to file level.You cannot read files on an NTFS partition with any other file system on same PC though such as FAT.
Trevor

Everything above but beware if you are going to convert the drive versus formatting the drive NTFS. In converting you create 512byte sectors versus 4096byte sectors when formating. The smaller sectors can create much more overhead when using your system. I always recommend formatting over convervion.

Iam running a 40GB HD with FAT32, no Problem.
Be sure to have denied drivers of ya Hardware, otherwise: Don`t convert!!!

Re: 32gb HD limitations....
Windows 2000 cannot *create* fat32 partitions larger than 32gb, but it can access larger partitions if they were created on a non-2k machine.
There is no minimum size for NTFS, but if you're going to *create* a partition larger than 32gb on a win2k machine, it has to be NTFS.
to Trevor:"You cannot read files on an NTFS partition with any other file system on same PC though such as FAT."
This is not correct. A win2k system can have any combination of FAT/FAT32/NTFS partitions and can read/write all of them. However, win9x cannot read NTFS partitions without the help of third party software.

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