You can convert the entire filesystem to NTFS by running in a shell window
ntfs C:
or
ntfs C:\
You would need to delete the partition and create a new one in its place; there is no standardized way of converting NTFS to FAT32. Several tools can be used to do this. cfdisk from the command line, or GParted graphically are probably the best options.
Windows XP has a utility to convert a FAT32 system to NTFS. However, to avoid the risk of possible data loss, it is best to back up all data, format the drive with an NTFS partition, and perform a clean install. Good answer but the correct answer is by Running the Microsoft Convert utility.
When -You want to be able to set local file access permissions. -You want to enable EFS support.
The NTFS file system proves to be secure than FAT32 since it can alert users about security issues on identifying them. At the same time, it provides encryption options and other permission settings.
NTFS (New Technology File System ) prevents changes from unauthorized users and prevents them from reading data from a computer.NTFS (New Technology File System) automatically encryptsfiles.
FAT32 can be used by more operating systems then NTFS. In order to use NTFS the computer must be formatted with the NTFS file system. NTFS systems are able to read both NTFS and FAT32. FAT32 systems cannot read NTFS.
If you are installing windows XP with Windows 9x or me than the I would recommend you to use FAT32 as if you use NTFS than you wont be able to access Windows XP with NTFS partition. If you are installing Windows XP with Windows NT or Windows 2000 than you can use any partition type. But I would recommend to use NTFS.
Largest file size is 4GB on FAT32. File size is virtually unlimited on NTFS.
No NTFS is the only file system capable of encryption
Windows doesn't provide any tools for converting an NTFS volume to FAT or FAT32. You will have to copy the files on the volume to another location and then format the drive. Note that FAT32 is a much more limited file system than NTFS, and there is probably no advantage to doing so on a server.
FAT16, FAT32, and NTFS.
NTFS FAT FAT32