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You can still access data/music/videos if your SDCard is formatted in FAT32.
As for which you should go with, that's upto you. If you are running an older ROM (<2.*) - you may want to think about partitioning your SD for ext2/3/4 (where your apps will be) and then FAT32.
If you are on a newer ROM (>1.6), you can format it as FAT32 and utilize the entire SD card.
(If you have any performance issues, you can always download Swapper and create swap-space for your phone to use, but you should be fine if you are running a Galaxy)
Phone: Samsung Galaxy S 4G / T-Mobile G1
ROM: G1: CyanogenMod v6 (Froyo) (updated 07/15/10)
Recovery: RA Recovery Menu 1.7.0
SD: 8GB Class 6 microSD
Hacks: 10 MB Hack
200
Plan A is always more effective when the device you are working on understands that Plan B involves a large hammer. 
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