What format should USB Drive be?

What format should USB Drive be?

The answer depends on where are you going to use it.

Fat32 =still the best file system as of (2010) for your USB
= although exfat have more feature, fat32 can be read by all windows os and linux
=If you are going to use it for Ready boost of Windows Vista or Windows 7
=Ubuntu can read/write fat32 also
=MacOS can read/write fat32 also

exFat= offer more security, available in Windows Vista, Windows 7 and Windows 2008
= also available for XP and Windows 2003 but you need to have an update
= non Vista/2008 might not read the USB if they don;t have the driver

NTFS=if your USB is >=30GB!
=or if you want to use the USB exclusive for a Windows 2003/2008 server by putting restrictions in folders via ACL (Access Control Lists)
=Ubuntu can read NTFS also but writing is available for Linux with NTFS-3g [source]
=Mac OS X can read NTFS, can write by using GPL-licensed NTFS-3G through FUSE, or you can try Tuxera also. [MacFUSE and NTFS plugin] [source]