I read on a book saying win2003 can redirect some folders in Documents and Settings to a location on the server, but this function required the client using NTFS file system. Is it possible to perform the same task with fat32 file system? Hello!

I don't recall NTFS on the CLIENT being a requirement. Why not change to NTFS anyway?

NTFS ACL permissions are required on the machine hosting the redirected folders. Look here: http://support.microsoft.com/kb/232692 I agree though; your network is only as secure as its least secure device; so, I also recommend your convert all those Fat32 drives to NTFS. Life's more painless for the brainless.

I wanted to, but a key program in my company is not compatible with NTFS. The program will need admin power to run properly on the NTFS system and I think it will a bad idea to give regular user admin power. Hello!

Program don't normally have file system requirements. They're more OS dependent. What program is this? You could always edit the permissions for the program so that users have the appropriate access. Life's more painless for the brainless.

I agree - I suggest you setup one system as a test system and then find out what files it needs access to. Then modify permissions. I am pleased to hear you don't want to give your users admin rights (EXCELLENT, WISE MOVE!)