I'm currently running two 120gig USB-2 drives with a single FAT32 logical drive configured, so it's clearly possible to do that with W2K. The only real issue is formatting the partition greater than 32gig with W2K, the solution is to use W9x or a 3rd party partitioning application.
When it comes to using the USB-2 drive, the advantage of FAT32 is that it's also compatible with other operating environments. The disadvantage is that the clusters are much larger than NTFS, and a single file can't be more than 4gig on a FAT32 volume. The file size comes into play if you want to use it for doing backups, don't ask me how I found this out.
When it comes to using the USB-2 drive, the advantage of FAT32 is that it's also compatible with other operating environments. The disadvantage is that the clusters are much larger than NTFS, and a single file can't be more than 4gig on a FAT32 volume. The file size comes into play if you want to use it for doing backups, don't ask me how I found this out.