>Yes, supporting NTFS is not the issue (I have one and it is formatted NTFS - in fact many come formatted that way out of the box). The question is whether or not it will be your primary boot device and if so, how to accomplish that. Technically, Windows will not boot from a USB harddrive. Also, the device cannot go through a USB hub if you plan to use this device for continuous reads/writes. You may want to read the bottom of this page:

Here's a link to a site that will let you create a bootable thumbdrive for XP. http://h18000.www1.hp.com/support/files/serveroptions/us/download/23839.html