This article outlines the features and advantages of converting to the NTFS file system with Windows XP or Windows 2000. In anticipation of dual- boot scenarios, upgrade Windows NT 4.0 to SP4 before starting the Windows XP or Windows 2000 installation. The version of NTFS included with Windows XP and Windows 2000 cannot be interpreted correctly by Windows NT 4.0. However, there is an updated Ntfs.sys driver in Windows NT 4.0 Service Pack 4 that enables Windows NT 4.0 to read from and write to NTFS volumes in Windows XP and Windows 2000.
Administrators can limit the amount of disk space users can consume on a per-volume basis.
The NTFS file system can automatically encrypt and decrypt file data as it is read and written to the disk. Programs can trap open operations against objects in the file system and run their own code before returning file data. This feature can be used to extend file system features such as mount points, which you can use to redirect data read and written from a folder to another volume or physical disk. This feature allows programs to create very large files, but to consume disk space only as needed. This feature provides a persistent log of all changes made to files on the volume.