Thnx for the sharing your experience with FAT32.
Anyway not a big issue since I only have FAT32 on my spare box, but I like to install when needed straight from a floppy as bootdisk and having XP setup on my harddrive.
Easy with FAT32, but have not tried yet with NTFS4DOS.
(In the past I used defrag from WinME on Win98SE, worked like a charm and very fast.)