Previously, I have always supplied video footage via a DVD but a customer requires it on a USB Stick. I have checked the file size and purchased the appropriate size Stick but need some advice concerning the formatting of the Stick. I have options for FAT32 and NTFS. My output file is an Mpeg2 and so I imagine it needs to be NTFS. Would someone be so kind as to conform or deny this please. 

The only important info you should keep in mind is that the size limit of a file in a FAT32 system is 4 GB.

Yes Yann, so as I thought, must be NTFS.

Of course it depends on what format is supported by your customer's device. Almost all devices support FAT32. NTFS has less support.

If both you and your customer are using Windows 7 or later (+ probably supported on other non-Windows devices?), for large USB sticks I would suggest using exFAT instead of NTFS - breaks the 4GB barrier, better suited to (slow) USB flash drives as it doesn't have all the complex folder structure "baggage" of NTFS.

Regards,
Richard