yeah, ive installed 2000 on both filesystems and it works great on both. But with my experience with XP, it works better with NTFS so i recomend that. Also, NTFS lets you handle larger files which is good if your working with dvd files.
NTFS [ New Technology File System ] was brought into affect with Windows 2000 as this was the first OS to use NT technology.
All Operating Systems built using NT technology are NTFS and backward compatible.
A FAT32 drive can be converted to NTFS with ease but cannot be converted back to FAT32 without formatting the drive.
Operating Systems before NT do not automaticaly have the ability to access a drive that is formatted in NTFS. That said, a drive formatted in FAT32 [ 98 & later ] can have extra specalised drivers added to give them the ability to read the NTFS format. That format is then know as NTFS5.
NTFS supports larger files contiguous files as well as longer file names and other features that the FAT32 format does not support.