What is NTFS?
This filing system was first used in Windows NT (thus the name). It boasts better reliability, security, and file management than the older FAT file systems . NTFS is available with Windows XP and Vista, and is the recommended system since many XP/Vista features will not work with FAT32 systems.
The only time you might want to choose FAT or FAT32 as your file system with XP is if you run an earlier version of Windows and other times run a newer one. Then you should have a FAT or FAT32 partition as the primary partition on the hard drive. In all honesty, though, this shouldn’t be the case for anyone anymore.