User permission to a program in xp home

I have a computer I am giving to a coworker, who is a Scoutmaster and he in turn is going to give it to one of his Scouts. Anyway. I have XP Home setup to where it’s an Aministrator and the user {unknown name}. I would like to have it so that the “user” has no use of programs other than ones they will specifically need, I have designated the “user account” as Limited. A thought that reclaimed my thought, the HDD is FAT32 – an old 10GB (yes that’s right, no typo!) Should I reformat it to NTFS?

Thank you in advance for assistance!!