Hi Shiau_d,
Welcome to Apple Discussions
I wish I was a volume format expert, but I am not (sadly). I think I may be able to answer your questions, or lead you to the answers.
1 - No. If it is just for files, I don't think you really would have a problem. You may want to look at MarkDouma®'s User Tip
Saving to non-HFS+disks from OS X & OS 9. It is somewhat old, but I think you will find it useful.
2 - FAT32 does not work as well as
HFS+ with Macs. FAT32 fragments easier then a hard drive that is formatted in HFS+. HFS+ enables
Journalling and Hot File Adaptive Clustering.
Developer Connection Document on HFS+ Volume Format says,
"Most files on a disk are rarely, if ever, accessed. Most frequently accessed (hot) files are small. To improve performance of these small, frequently access files, they are moved near the volume's metadata, into the metadata zone. This reduces seek times for most accesses. As files are moved into the metadata zone, they are also defragmented (allocated in a single extent), which further improves performance. This process is known as adaptive hot file clustering.
The relative importance of a frequently used (hot) file is called its temperature. Files with the hottest (largest) temperatures are the ones actually moved into the metadata zone. In Mac OS X version 10.3, a file's temperature is computed as the number of bytes read from the file during the recording period divided by the file's size in bytes. This is a measure of how often the file is read."
You may want to look at
Wikipedia: File System Comparison
The maximum file size for HFS+ is 8Gb, where FAT32 is only 4Gb.
3 - I suggest anything from
LaCie,
SmartDisk, or
Western Digital
I recommend the
LaCie D2 Hard Drive Extreme w/ Triple Interface,
SmartDisk CrossFire, or the
WD Dual Option.
I use a SmartDisk CrossFire for both my iTunes library as well as my iPhoto library. If you need help moving your iTunes library you might want to look at
Knowledge Base Document #301748 explains
How to Move Your iTunes Library.
You can make a HFS+/FAT32 formatted hard drive; look
here.
Jon
PS I don't know a lot about file systems; I hope that helped.
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