Since each operating system cannot access the other's drive, you get the impression you have only half a hard drive, or less space available compared with FAT16 despite all of its wasted space. Windows 98 or Windows 95 OSR2 can be installed either with or without FAT32, although we don't have the specifics here on how to make that choice. If you do install or change to FAT32 or NTFS, you don't have to worry about good number and bad number choices for partition sizes. If you are re-partitioning a hard drive to compensate for wasted space using FAT16, we suggest partition sizes of 508 or 1018 megabytes. I wouldn't worry about whether FAT32 is safer than NTFS or whether NTFS is more reliable than FAT16.
Any disk can fail with catastrophic data loss.
The only way to protect against data loss is to make backup copies of your data. If you make separate subdirectories for your data and files and documents and remember where they are, you may be able to use ordinary diskettes to backup just your own stuff and save time compared with backing up the entire system. If the PC comes with OSR2 installed, you might as well go ahead and use it. A small number of applications including a DVD video player from ATI Technologies will work only on PC's with OSR2. We do not believe it is worth the effort to convert to OSR2 just for the sake of one or more of these applications.