Benefits of NTFS:
More efficient storage. You will be able to store more files with NTFS.
More options. Most of the rest of the features discussed in this tutorial are not available with the FAT system, and will not appear in the dialog on your computer if you have FAT installed.
Drawbacks:
If you have any machines networked to your machine, those machines will not be able to read the hard disk if it is NTFS unless they are also running Windows NT or Windows 2000.