Original: All versions of the operating system support the Windows NT file system, NTFS 3.0, the Encrypting File System, as well as basic and dynamic disk storage.
Simplified: Windows 2000 supports the Windows NT filesystem NTFS 5, the Encrypted File System (EFS), as well as basic and dynamic disk storage. Dynamic disk storage allows different types of volumes to be used (a volume is an area of storage on a hard disk that has been formatted with its own file system structure).