As far as I know, Dragon works fine on all 32-bit Windows systems with FAT32 disk types. I've used Dragon on Win98se, and WinXP. WinME and Win2K I have no experience on.
As for NTFS, I'm not sure if it works in any of the "compatibility modes" (under XP) but it might be worth trying.
There's really no more "core" development of Dragon anymore, however, there is a newer version than the one I support. You can find version 1.05.00 PR6 at
www.uocm.de but it does not fully work with my mods.
-Ryandor