There's quite a lot of options for Mac users:
1) The default HFS+(J) is probably the simplest. If you are working in
an all Mac environment, this should be fine. If you need cross platform
support, most linux distros allow you to access this as read only and
you can download a 'free read/write linux HFS+ driver from Paragon'
(http://www.paragon-software.com/home/ntfs-linux-per/). For Windows
access to HFS+ drives you can use the 'MacDrive commercial drivers from
MediaFour' (http://www.mediafour.com/products/macdrive) or 'Paragon'
2) Plain old FAT32 is aging but will work out of the box with almost
any OS including directly with a SqueezeBox Touch. The main limitation
is the 4GB individual file size, which might be a problem if you intend
to store video files on the same drive as well, but for audio files
only, it should not be a problem.
3) You can stick with NTFS and use either a 'free open source Mac read
write driver like NTFS-3G'
(http://www.tuxera.com/community/ntfs-3g-download/) or commercial
versions from 'Tuxera'
(http://www.tuxera.com/products/tuxera-ntfs-for-mac/) or 'Paragon'
(http://www.paragon-software.com/home/ntfs-mac/). NTFS has relatively
robust cross platform support either out of the box or through open
source drivers, including native access by the SqueezeBox touch.
4) As stated above exFAT from Microsoft is another option. It is
similar to FAT32 but removes the 4GB file size restriction. It
supported by most recent releases of Windows (I think Win 7 and above,
but can be added to XP and Vista as a free download) and MacOS (I think
OS 10.6 and above). There is also a FUSE read/write driver for linux,
and because this format is the official format for SDXC flash cards, we
are likely to see a lot more support in the future.
5) Finally if you would like to protect your data well, you might want
to consider ZFS. A commercial mac version from 'Ten's Complement'
(http://tenscomplement.com/) called 'Zevo Silver Edition'
became available and there's also an 'open source version'
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