|"I use ntfs on flash drives. It allows larger files.|
It's a waste of time converting a flash drive to NTFS software partitioning for only that reason in my opinion. How often do you have a single file larger than 4 gb you want to be on a flash drive ?
Yes, FAT32 has a max 4 gb per file size limit.
There is no difference in the file allocation unit size for an 8 gb drive partition.
FAT32 uses 4 kb clusters for drive partitions up to 8 GB in size, the same as NTFS.