A. Windows NT 5.0 introduces NTFS 5.0 which enables a number of new features. By default when you install Windows NT 5.0 it will automatically convert any NTFS 4.0 partitions to NTFS 5.0. ANY and ALL NTFS volumes Windows 2000 sees - including removable media are automatically converted to V5.0 on the fly when Windows 2000 mounts them.
Service Pack 4 has an updated NTFS.SYS which can read NTFS 5.0 partitions so apply this to any systems that need to read Windows 2000 NTFS 5.0 partitions and in a multi-boot environment BEFORE installing Windows 2000.
By default (you can override using advanced option button) on server installations the boot partition will be upgraded to NTFS if you’re not in a dual boot environment, yep that’s right it automatically upgrades from FAT to NTFS.