Why BackTrack3 Stored in USB Can Not Save Changes? What is the Theory Behind it?

I have a 16 GB Flash Drive. I changed the settings & set it as local disk, so my Vista recognizes it as a local disk, not removable disk.

After that, i deleted the whole partition & then i made new partitions. I chose 9 GB to be in FAT32 format & 7 GB will be in ex2 format to save future changing in BT3.

Questions:

  1. Why backtrack in FAT32 format can not save changes even though there are a lot of space?
  2. How backtrack in FAT32 is related to EX2 partition?
  3. Windows does not recognize EX2 partition, does this mean when i plug my USB on machine with Win OS, all my changes in backtrack will not appear?
  4. Windows has only two partition formats FAT & NTFS - As far as i know. How many formats Linux have, what are they? and what is the role of each format?
  5. What partition formats are called file system?

I'm new towards these stuff, i hope you can clarify to me in an easy & simple way.