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It is a fact that hard disk drives are very, very large nowadays. Formatting them as FAT (in any of its versions) is suboptimal due to the deficiencies of this file system: big clusters, lack of journaling support, etc. But, like it or not, FAT is the most compatible file system out there: virtually any OS and device supports it in read/write mode. Today, I had to reinstall Windows XP on my Mac (won't bother you with the reasons).