NTFS is the only logical choice for modern computing environments, some reasons why below:
Recoverability The recoverability designed into NTFS is such that a user should seldom have to run a disk repair program on an NTFS volume. NTFS guarantees the consistency of the volume by using standard transaction logging and recovery techniques. In the event of a system failure, NTFS uses its log file and checkpoint information to automatically restore the consistency of the file system. For more information about recovering your system, restoring data, and creating an emergency repair disk (ERD) see "Repair, Recovery, and Restore" in this book.
Compression Windows 2000 supports compression on an individual file basis for NTFS volumes. Files that are compressed on an NTFS volume can be read and written by any Windows-based application without first being decompressed by another program. Decompression happens automatically during the read of the file. The file is compressed again when it is closed or saved.
In addition, formatting your volumes with NTFS instead of FAT16 or FAT32 provides the following advantages:
There are some Windows 2000 operating system features that require NTFS.
Faster access speed. NTFS minimizes the number of disk accesses required to find a file.
File and folder security. On NTFS volumes, you can set file permissions on files and folders that specify which groups and users have access to them, and what level of access is permitted. NTFS file and folder permissions apply both to users working at the computer where the file is stored and to users accessing the file over the network when the file is in a shared folder. With NTFS you can also set share permissions that operate on shared folders in combination with file and folder permissions.
Windows 2000 can format volumes up to 2 terabytes in size with NTFS.
The boot sector is backed up to a sector at the end of the volume.
NTFS supports a native encryption system called Encrypting File System (EFS), using public-key security to prevent unauthorized access to file contents.
NTFS functionality can be extended by using reparse points, enabling new features such as volume mount points.
Disk quotas can be set, limiting the amount of space users can consume on an NTFS volume.