Reformatting hard drive

  My second PC is an old Dell Dimension 2350 running Windows XP Home SP3 and IE7.  So far, I think I would just as soon stay with XP Home instead of upgrading.  I noticed that the hard drive is formatted with the old FAT system.  Would there be any benefit to reformatting the drive and using the NTFS system?  I have the original recovery CD, so that shouldn't be any problem.  Anyone have any hints or tips before I start the process?