|The differences have nothing to do with compression. Files are not compressed unless you manually compress them. The main difference is that NTFS is more effiecent in using the disk space. Also more secure do to the method used to track where on the partition a file is stored. Look at the cluster sizes below.|
for FAT32 are as follows:
512MB to 8,191MB = 4KB
8,192MB to 16,383MB = 8KB
16,384MB to 32,767MB = 16KB
Larger than 32,768MB = 32KB
NTFS - All partitions on a PC = 4KB default
So, if your partition is relitively small you can use FAT32, otherwise use NTFS. One other point is that if you are dual booting and using an older OS like Win98 it can't access NTFS partitons.