Well the higher your cluster size, the better your performance will be (but you will get more space wasted).
Any one single file takes up a cluster (no matter how small the file is). Say let's say you have a 2KB text document. That document will file one cluster, and since the cluster is 32KB, you're going to lose 30KB of space.
Your file allocation tables (or FAT) are composed of clusters. Clusters are composed of sectors (the smallest area of data on a drive, 512 bytes). The bigger they are, the better the performance.
I have a 20GB 7200 IBM drive. My primary DOS partition is 16.1GB My extended which makes up the rest of my drive is 3.1GB
My burst rate on the primary is about 40MB per second. On the extended, it is about 25MB.
There's no TOO much of a difference in the normal transfer rate though.
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Benchmarks don't lie