Here is what MS says about FAT and NTFS

http://support.microsoft.com/default.aspx?scid=kb;en-us;Q100108

I'd say that if you want "portability" (you use your drive with several
platforms) FAT32 is the way to go. If your environment is homogeneous
(All Windows systems) I'd use NTFS.

In regards to performance if you're using an external USB drive you
won't gain much on performance with NTFS as the USB connection becomes
the bottleneck. Don't quote me, but I believe that the performance
advantage of NTFS is due to its smaller clusters size.  Btw, I have seen
FAT32 partitions formatted using 3rd party applications that are larger
that the "officially" Windows supported size. FAT32 4GB limitation on
file size comes into play if you use the drive for backup because backup
applications can create files that are larger than that. NTFS also
provides better security, but if you're using the drive just to store
music files I don't see the need for security and its overhead.


-- 
tamanaco
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