I just read this about PostgreSQL on the PostgreSQL website:
2.4) Can I install PostgreSQL on a FAT partition?
PostgreSQL's number one priority is the integrity of your data. FAT and FAT32 filesystems simply do not offer the reliability required to allow this. In addition, the lack of security features offered by FAT make it impossible to secure the raw data files from unauthorised modification. Finally, PostgreSQL utilises a feature called 'reparse points' to implement tablespaces. This feature is not available on FAT partitions.
The NTFS file system is a journalled filesystem offering much better reliability and crash recovery. In addition, it has a comprehensive access control system and offers the reparse point functionality used by PostgreSQL.
For this reason, the PostgreSQL installer package will not initialise a database cluster on anything but an NTFS partition. The server and utilities may be installed on any partition type.
It is recognised however, that on some systems such as developer's PCs, FAT partitions may be the only choice. In such cases, you can simply install PostgreSQL as normal, but without initialising the database cluster. When the installation has finished, manually run the 'initdb.exe' program on the FAT partition. Security and reliability will be compromised however, and any attempts to create tablespaces will fail.
I have a FAT32 file system, so I guess I can't use it. Or if I do, I might have problems. You think?