cosmicdom: Perhaps should be add this sentencet to yours:
NTFS can be convert to FAT or FAT32 without format just with using PARTITION MAGIC.
You can decrease the size of cluster in both NTFS and FAT(16-32) so space wasting can be increase in both of them.
At the end of i advise PARTITION MAGIC for all of your hard drives's work (FORMAT , CONVERT and etc.).