ANSWERS: 2
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One significant difference is that a FAT32-formatted drive can't handle individual files bigger than I think 2 GB. So if you try to download a DVD rip of some movie as a single 4 GB file, it won't work; you need to download it to an NTFS volume.
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Also, NTFS formatting can use compression more easily than FAT32. Speaking strictly from personal experience, I find NTFS faster to access than FAT32, as well.
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