Difference between NTFS and FAT32
NTFS
1) Allows access local to w2k w2k3 XP win NT4 with SP4 & later may get access for some file.
2) Maximum size of partition is 2 Terabytes & more.
3) Maximum File size is up to 16TB.
4) File & folder Encryption is possible only in NTFS.
FAT 32
1) Fat 32 Allows access to WIN 95,WIN 98 win millennium win2k Win XP on local partition.
2) Maximum size of partition is up to 2 TB.
3) Maximum File size is up to 4 GB.
4) File & folder Encryption is not possible.

Differences between NTFS and FAT32

NTFS stands for new technology file system or network technology file system. In NTSF partition size can be of 2 TB or more. and file size can be 16 TB. File/folder encryption is done. and it supports file name character up to 255.FAT32 stands for File allocation table. in FAT32 partition size can be Up to 2 TB. and file size can be 4 GB. File/folder encryption is not possible in FAT32. and it supports file name character up to 8.3.

What are the differences between NTFS and FAT32?

If you are using multiple OS’s on the same computer (Windows XP and Windows 9x) and you want the two OS’s to read the drive, FAT32 is the only way to go. But, if you are planning on only using Windows XP, NTFS is the way to go. There are several reasons why NTFS is the way to go. One of the highlights of NTFS is the protection that it provides for files. To ensure reliability of NTFS, three major areas were addressed: recoverability, removal of fatal single sector failures, and hot fixing. NTFS is a recoverable file system because it keeps track of transactions against the file system. When a CHKDSK is performed on FAT or HPFS, the consistency of pointers within the directory, allocation, and file tables is being checked. Under NTFS, a log of transactions against these components is maintained so that CHKDSK need only roll back transactions to the last commit point in order to recover consistency within the file system. Under FAT or HPFS, if a sector that is the location of one of the file system's special objects fails, then a single sector failure will occur. NTFS avoids this in two ways: first, by not using special objects on the disk and tracking and protecting all objects that are on the disk. Secondly, under NTFS, multiple copies (the number depends on the volume size) of the Master File Table are kept.
In NTFS file systems the security is high compare to fat 32. In NTFS the max drive size is 2 TB. In fat 32 the max drive size is 32 GB