Goodmorning to all of you

I've bought a 2,5inch hard disk (Seagate/40GB/4200rpm) and i would like to install it to my a1200.
Which operating system i must choose , in order not having issues partitioning the drive...
And which Filesystem is better (perfomance/file handling) because i want to store a lot of dms images in it.
I have workbench 3.1 :roll: and OS 3.5 , can i use on of them?