you can install win xp on a fat 32 system as i do but i only do this as i use a program called hyperos to swap from one o/s system to another.but if you are just using a normal system with 1 operating system then yes i agree with everyone else ntfs file system is better.but the xp disc will not give you the oppertunity to format in fat32 anyway only ntfs as this is what it was built on.unless you realy need fat32 its not worth thinking about.
1 Thermaltake Tsunami Dream case Jeantech 400w psu 220gig sata H/Drives Abit AV8 Mobo Socket 939 AMD 4200+ x 2 @ 2.6 ghz 2048 ram. 256mb Nvidia geforce 6200.
2 Abit AV8 350w psu AMD64 <A firstname.lastname@example.orgGhz 512 ram geforce tornado 128mb.
3 Advent 7038 laptop AMD 2500+ 512ram ATI 320 graphics. wireless.