NTFS's advantages
<b>Security</b>, you can set file-level permission to control access as well as <b>encryption</b> to protect your sensitive files.
<b>Compression</b>, NTFS compression can be applied to a volume, folder or file therefore saving disk space (Drive Space in W9x can only compress the whole volume, and if a single corrupted sector could cause the loss of the entire volume).
<b>Reliability</b>, NTFS is easy to recover from system failure than FAT32.
<b>Capacity</b>, NTFS can be used on a huge volume (up to 2 TB or more than 2000GB, I think).
I heard that in some cases, FAT volumes can be faster than NTFS' because of the overhead involved in managing NTFS (ie. small drives with a large number of small files), but you wouldn't see any significant difference between these 2.
Good or Bad have no meaning at all, depends on what your point of view is.