My first experiance with XP and FAT32 were back in the early beta days. I had a couple reboots that produced recovered files. Was working with files on that drive trying to find what iso's where incomplete now and BSOD. When it came back scandisk ran and whole drive was recovered files. Couldn't do anything with files that were there so disconnected drive, looked around for answers. Got basicly same reply as here so reformatted NTFS and drive hasn't had a problem since. Was hard for me to believe I could loose that much data with 1 reboot, but it happen. Ever since then I always run NTFS.
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