NTFS vs. FAT

The Advantages of NTFS:

The NTFS file system is generally not compatible with other operating systems installed on the same computer, nor is it available when you've booted a computer from a floppy disk. For this reason, many system administrators, myself included, used to recommend that users format at least a small partition at the beginning of their main hard disk as FAT. This partition provided a place to store emergency recovery tools or special drivers needed for reinstallation, and was a mechanism for digging yourself out of the hole you'd just dug into. But with the enhanced recovery abilities built into Windows XP (more on that in a future column), I don't think it's necessary or desirable to create that initial FAT partition.

When to Use FAT or FAT32:

If you're running more than one operating system on a single computer, you will definitely need to format some of your volumes as FAT. Any programs or data that need to be accessed by more than one operating system on that computer should be stored on a FAT16 or possibly FAT32 volume. But keep in mind that you have no security for data on a FAT16 or FAT32 volume—any one with access to the computer can read, change, or even delete any file that is stored on a FAT16 or FAT32 partition. In many cases, this is even possible over a network. So do not store sensitive files on drives or partitions formatted with FAT file systems.

By Charlie Russel, Microsoft MVP for Windows Server and Tablet PC