WDPassportExternal NTFS conflict/internal OS FAT32?

I'm pretty sure i'm in the right place to ask this question......

Will there be a conflict of some sort?

I just got a western digital external passport. I don't know if ones are formatted differently but this one is formatted for FAT32

Link to the External Specifications:
WD Support / Installation / My Passport / My Passport Essential

Now that i think about it.... aren't all externals formatted as FAT32 or at least specific ones?
I don't know much about the uses, pros, or cons of different formats, so i guess thats why i'm asking.

My internal HDD (not sure what brand, the computer is intel) is formatted for NTFS.

1.) If I move and transfer large files of different format types at the same time, or a lot of little files with different formats, will i have problems?
2.) Is there anything that I need to watch out for?
3.) Should i format my OS drive/partition to work better with the external?
4.) If i'm a gamer, what would be the best format to use for my OS drive?

Thanks for all responses!!!!

Not sure why externals may be FAT 32. Maybe so Mac or Linux users can use them?

Can't think of any overriding reason to not go NTFS on all drives if you are not a Mac or Linux type.

If anything, you should make your external conform to your OS drive.

Your OS drive should be and likely is NTFS. I'm not saying the external has to be NTFS, but I wonder why it should be FAT 32 for a PC user? There might be a reason---I don't know what it is. The so-called gurus say that NTFS is more stable and error-free.

Well, i've matched up the format of my external with everythign else and all is good. was even able to do it with the information still on the drive as it converted from FAT32 to NTFS