The NTFS (New Technology File System) is available with Windows Operating System since the original version of
Windows NT. Windows Server 2003 uses the same NTFS system that was introduced in Windows 2000 (NTFS 5). The new NTFS is different from the NTFS system available in Windows NT 4. The important newly added features are as listed below.
Active Directory: The LDAP (Light Weight Directory Access Protocol) directory which holds all the objects in your Windows 2003 network, allowing and preventing access through permissions.
Disk quotas: Disk Quotas Limits the use of disk space on a per-user or per-group basis.
Shadow copies: Shadow Copies are an easy way to recover from many file-related accidents caused by human error, such as accidentally deleting, corrupting, or editing a file.
Encrypting File System (EFS): Encrypting File System (EFS) provides automatic encryption and decryption of file data as files are written and read.
Distributed File System (DFS): Distributed File System (DFS) technology allows using a single directory tree to include multiple servers and shares in different locations.