Formatting with NTFS

Any idea why Windows XP Pro will boot beautifully with the drive being formatted as FAT32, but when I try to install XP on a drive formatted as NTFS, it will boot a couple times and then just sit there on the startup screen and do nothing except show me that nice blue bar that keeps scrolling...

This has be stumped. I've been able to boot with 2000 Pro using NTFS and had no problems.

Any suggestions are very welcome at this point...