NTFS

NTFS is generally better if you have 20+GB HD, 128+RAM, etc. and on some systems, NTFS can run faster than FAT32.

Convert to it if you don't have or need any other OS's (ie Win9x/Me/Linux etc) loaded on your computer.

Other advantages include:
Support for file sizes over 4GB
Support for extended characters in filenames
Encrypting files
Disk Quotas (stopping users from downloading too much)
File and Folder protection
Less Fragmentation
Log which tracks changes (good for tracking)Faster searches

Some of these features depend on whether you've got XP Home or Pro and whether you're an administrator.

Converting to NTFS is very easy and the conversion itself is stress free 99% of the time. Converting back is very difficult.

If you're not too sure about the change, try NTFS on a spare partition first (if you have one) to test it for yourself and with your specific hardware.

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