During installation, the Windows XP installer asks me to format the Windows partition using NTFS or FAT. Which should I use?
If the partition is 32 GB or smaller, you can use either FAT or NTFS. If it's larger than 32 GB, then you can only format it using NTFS. Mac OS X can read and write FAT volumes, but only read NTFS volumes. Refer to the Windows XP documentation if you are not sure which best suits your needs.
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This means that FAT32 willl let OS X write to the Windows drive. I know for a fact that that works. Unfortunately, I'm not positive, but I don't know if Windows can see OS X!
If someone here can tell you otherwise, great, but if not I think your best bet is to buy a 1 GB flash drive and just use that to put files on and off of as you restart. Also remember that boot camp is still a Beta program. Once OS X.5 comes out next year I'm sure this kind of thing will be MUCH more streamlined. So any workaround you figure out might only have to last you a few months.