Well sailor 420, 4 gigs compressed represents alot of video in an indivdual file. My gut feeling is that FAT32 will work out fine for you.
Basically it boils down to bit rate, at 2 megabits a second (a very high quality divx/xvid/mpeg-4/windows media file) you can record 266 minutes in a 4 gig file.
MPEG2 compression used on DVDs at around 10 megabits a second would only give you 53 minutes of video in a 4 gig file.
The original MPEG standard compression used in videoCDs is 1.5 megabits a second and that gives you 355 minutes in 4 gigs.
If you could tell me what software you plan on using I can check which codecs they use (and then what type of bitrate we are looking at) No matter what codec you use you can set the bitrate to fit your need.
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