Knowledge about filesystems is a good way to show off.  In this text, you will learn about many different filesystems and their features.  

You better think about what OS u use because although you think FAT32 is excellent time to prove you wrong.   Below are different features used in FS's.

-Journaling (sometimes, but rarely called logging) logs everything your data does on your HD.  You are probably thinking that this is for security reasons.  However, since it logs everything, if your computer crashed you wont need to run a scandisk as the log will know everything that needs to be deleted and fixed and where files belong.  You may think that running scandisk isn't a problem after your computer crashes.  But imagine scanning an 8 terabite drive.  That could take hours.  Journaling is used in ReiserFS (a new linux FS to replace EXT2 and that is availble on new linux distributions but isn't default) and NTFS 5(Windows NT file system)  which doesn't presently but it will probably be a common feature in the future.
-B trees or balanced trees are the most efficient way of organising an OS to date and is used on most new OS'.  It is not available on FAT32, FAT16 or Ext2.  It increases the speed of the access time, eliminates fragmentation completely (no more defrag... ;) ) and increases available free disk space.
-On the fly encryption allows you, if the OS supports it to directly encrypt and decrypt files at your will without the need for opening one file first.  The encyption is transparent and you can barely notice it. (but you need special software)
- On the fly compression, like on the fly encryption allows you to compress files automatically if you have the software.  It is similar to a drvspace drive in windows.

Presently FAT32 is the fastest FS... But only initially.  Microsoft seems to have cheated by making their OS faster.  However, since FAT32 is VERY vulnerable to fragmenting, the FS actually get very slow and even though fat (file allocation tables) supports 8 terabites, it will slow down too much due to fragmenting.  Linux however uses B trees to prevent fragmenting making their file system a tiny bit slower at the beginning, but when compared to FAT32 in the later months, it is significantly faster.

Below is a list of the Filesystems and their parent OS':
-REISERfs, supports linux, fragmentation resistant, fast speed, On the fly encryption and compression, 16 terabites max space, Mainstream ReiserFS support is added in kernal 2.2.. The reiserFS in earlier are still beta and not perfect
-NTFS 5, supports Windoze NT 5/Windows 2K, apperently fragmentation resistant but doesn't seem to be, OK speed, On the fly encryption and compression, 16 terabites max space 
-HPFS, supports OS/2, Linux (but isn't recommended FS for linux), fragmentation resistant, fast speed, No on the fly encryption and compression, 2 terabites max space 
-EXT2, supports Linux, fragmentation resistant, On the fly encryption and compression, better speed, 16 terabites max space, used before REISERfs was released 
-FAT32, supports Windows 98/97/ME, fragments in minutes, Very fast initial speed but greatly slows down to ok speed due to fragmentation, 8 terabites max space... Superceded by NTFS 5 included with Windows 2K.
-Swap, used in linux instead of a swap file, supports Linux, Very fast speed, only purpose is to be used as temporary space if ram runs out, ie swap space, recommended 120megs of space but doesn't need to get large, IF INSTALLING LINUX, HIGHEST RECOMMENDATION INASTALLING SOME

As you can see, even Microsofts architecture sux and thats on NT and 98.  Also, the only main differences from FAT16 to Fat32 was that they decreased cluster size (which improved free space) and increased the max partition size from 2gigs to 8 terabites... However, its still got its fragmentation problems. And thats just another reason why I dont recommend Microsoft OS'.  How can Microsoft's OS' be simple to use if you always need to scandisk and defrag, while in Linux you dont?  Yep.. Linux is definately the OS people should use if they have an IQ over 90 !   

Also, why the fuck in does convert in Windows 2000 have a parimeter "/FS:NTFS" which is meant to be to determine the filesystem you wanna convert the drive to, but will only convert the drive to NTFS.. You dont use the parameter, it does that anyway.  Fucking dodgy microfux.

EXT3 is also out now in beta form, in the newest distributions of linux, but I'm not entirely sure of its features.  I would expect it to have similar features to REiserFS however.  Personally, I would recommend ReiserFS at the moment, as it is probably less buggy.