External USB drive for migration Transporter Agent - how should I format it? NTFS?

I can't believe in all the documentation on the site about how to migrate a physical Windows machine into Parallels Desktop for Mac, they don't ever tell us what format the external USB drive should be in!

If I use OS X Extended Journaled, then Windows 7 won't recognize it. If I use FAT, then it won't accept the large file. If I use NTFS, will OS X recognize it?

 

OSX can read NTFS and read and write exFAT ( http://en.wikipedia.org/wiki/ExFAT ), both of which are perfectly capable of dealing with big files.