Wow, there's an echo in here.
That's just what I said: 2k on an older machine, XP on a newer one. NEVER 95, 98, or ME (they all suck).
FAT32 has very little to do with the operating system. I just so happens that Windows 95 OSR2 (second edition) was the first to use FAT32 instead of FAT16. This allowed for larger hard drives (over 2gig), that's all.
You can use FAT32 on Windows 95 and all OS's that come after (including 2k and XP).
NTFS can only be used with Windows 2k, XP, or NT.
Note: NTFS is NEVER a good idea for the drive that you run Windows from. If there is a problem that requires you to reinstall from a floppy or another boot device, or manually make changes to the drive, it cannot be done with NTFS. NTFS is ONLY good for security. After many years of testing on many different systems, I can tell you that there are almost no performance differences, only security. Use it on your storage drives only, not the boot/system drive.
This thread is quite old now, and still I feel that Windows XP (pro or home) is the best "Main-Stream" OS ever. I'll bet Linux has the potential to be much better, but I'm not familiar with it (much), and it's not really "main-stream".
Yes, XP has it's troubles (just like Mac OS X, and all other OS's), but all in all, it's great. Now, with Service Pack 2, it's pretty secure too.