And you can use newer formats than FAT32.
Yeah, I was pleseantly surprised at how well the SD->Memory Card interface runs. I never tried anything but FAT32 for mine, but every game I tried seemed to run at least as well as burned discs used to run for me. I know it's slower, but apparently most of the time (so far for me, all of the time) it's fast enough. Certainly a lot better than those bitch ass slow USB ports the PS2 has.