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Yes I was curious as well... although windows xp supports both file systems, ntfs and fat32, the only reason I can think of for him using fat32 is maybe he is dual booting and using a 9x OS... if he is not, then I highly suggest reformating again and making sure he is formatting with ntfs, since it seems he is not losing any important data. You can see what file system he has by going into my computer and just clicking the C: drive once and looking at the left side where it says "details".
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Im not sure about that. :o
I guess it was fat32 but he has reformated and it is now NTFS.