The Microsoft WinXP Help files state that there is a slight performance hit on drives converted from FAT32 to NTFS rather than formatted as NTFS to begin with.
I'm not sure, but if you install WinXP Upgrade on a freshly formatted NTFS drive/partition wouldn't it just ask you to insert a qualifying product CD (Win98 in this case) and install once such a disk was inserted for verification? I seem to recall doing this when I upgraded to Win2K (running WinXP Pro now).
JohnE.
(doh, just realized you may need (to borrow) a Win2K disk (from someone) for that to work

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