Using parallels software

I just purchased a new Imac. am in the process of installing paralles software with winxp. unfortunately, i need to utilize windows for work. anyways, i don't know if i am supposed to install with <fat> or <ntfs> file system. please help. i only use the windows side of for internet based application. not very intensive, mostly data and scanning. thanks.

Hi
This will not be a complete review of my experiences with Parallels as I'm relatively new to Macs etc. However, I have to admit to being reasonably impressed.
I jumped on board the Parallels trains at Beta2. It's now at Beta6.
I have installed WinXPPro with SP2 and with each new upgrade something extra is added by the Parallels team in terms of funcationality. I'm not convinced with the performance side of things at this time and would suggest that it runs as fast/slowly as my native Windows machine. However, this might be my fault.
On an orignal install of Parallels I used the default settings and it installed WinXPPro SP2 in about 8GB. On loading the VM for the first time it positvely flew and I was rightly impressed. My latest install (after I reinstalled Mac OS X) saw me tweak the size of the HD image to 50GB (why I'm not too sure now) and, as I say, it's not the fastest in the world and seems to take some time to load.
Once loaded however, save for the noticeable jumping effect the mouse has, things load quickly (Dreamweaver, Office etc) and perform well.
Apparently the Parallels team are working hard on the software and hope to have a release of the "final" product soon.
In my opinion it allows me to run the few software packages which I need and can't find for OS X yet - MS Money for example. It performs well and is a great work in progress with lots of potential. I still have much to learn and experience with Macs and Parallels is one of those programs I feel I would like to spend time optomising.
Hope this is of use?
iMac 20", 2GB RAM   Mac OS X (10.4.6)  

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