While we could have a whole page on this subject, we chose to keep this one simple due to the overwhelming info on the net about this matter. FAT stands for "File Allocation Table" & NTFS is "New Technology File System." To keep it simple, this is the way data is written to the hard drive. Each FAT (FAT12, FAT16, FAT32, & NTFS have limitations as to how big of a partition it can handle. For the FAT specifications you can go
here to see the history and gain an understanding. As for NTFS you can go to this
page.
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