Whoa...okay...I hate to start arguments and I'll keep it nice if you will, but there's a lot of misinformation in your post:
NTFS has only been available since the NT era which means win2000, nt or xp.
That's not really wrong, but NTFS has been around LONGER than FAT32 (but not longer than FAT16).
While in NTFS, a 1bit file will take only 1bit.
I'd have to open my books to see the exact numbers here so excuse me.... but that's the way it works.
That is not true. All MS operating systems use allocation units (clusters) of a certain size. I think maybe the difference you're trying to point out is MFT's vs FAT's, in that the master tables used by NTFS are indeed more efficient than the allocation tables used by FAT32....but even the MFT has a record of a certain size, and that's only an issue for *very* small files that can be stored right in the MFT.
I'm not aware of any file system on any operating system that can store a one bit file using one bit.
Also, it's easier to recover files after a format on FAT32 than NTFS.
Acutally, NTFS is more recoverable because it's transaction based and keeps multiple copies of the MFT. The only way that FAT32 might be considered more recoverable is that a lot of old recovery tools would only work with FAT...but that's changed.
As far as defragging goes, it's sort of a non-issue. I defrag my system drive once a year, and rarely defrag my audio drive (which is horribly fragmented). I do agree though that the windows defragmenter isn't the greatest.
Performance wise on large audio files, both file systems will put up very similar numbers. Therefore, it just makes more sense to go with NTFS. It was true back in the 4800/5400RPM drive days and NT4 and PIO that NTFS was a bit slow for audio, but that is no longer the case.
Slackmaster 2000