I am considering setting up a dual boot system with my existing winME system and a new winXP system (both systems on separate physical drives, one formated as NTFS, one as FAT32).

What I want to do is a slow transition over the XP system, copying files as I need them.

I have read that NTFS can read FAT32, but what exactly are the implications of this? When you copy a file from a FAT32 drive to an NTFS drive, does the OS convert the file to NTFS or keep it in FAT32 and just read it?

Are there any issues with copying from FAT32 to NTFS that I should be aware of?