Windows XP (very important to note 32bit) and Server 2003 R2 are different kernels. When MSFT released XP x64 (not to be confused with the IA64 release), that build was based off of the Server
2003 kernel.
Yes, there are significant difference between the client and server versions. It is no different from how it is currently implemented where both client and server share the same kernel (starting
with Vista). Linux is no different. A client version of RedHat can easily have the same kernel as a hardened, "headless," non-GUI RedHat server. Its not just the kernel that makes a system a client or server, but the tuning of the entire OS as a whole.
Yes, XP can use FAT or NTFS (NFTS was always recommend for resilience, journaling, etc). XP was targeted to everyday consumers, some of whom had FAT/FAT32 formatted volumes. Using FAT or FAT32
as a file system format for the OS drive is depreciated due to its limitations. The reason server would not have any support for using FAT formatted volume is because you would ALWAYS want to have resilience, performance, journaling, etc. on any server system
running dedicated server versions of an OS. No one in his or her right mind would run a server running Server 20xx on a FAT formatted volume.
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