Why does an external USB HDD have a working Recycle Bin?

I have just purchased a Buffalo MiniStation 500GB, USB 2.0 Portable HDD. I am using it on Windows XP Home SP3. The drive came pre-formatted with FAT32.

I notice that when I delete files, it asks me if I want to send them to a Recycle Bin. I had thought that external devices (flash/hard drives etc.) did not utilise the Recycle Bin - it was just for internal drives.

So why is there a working Recycle Bin on the drive? If I format the drive to NTFS, will I still have a working Recycle Bin or not on the drive?

According to Microsoft if it is a local hard-drive, it will have a recycle bin, it won't if it is a network-drive or a floppy-drive (or presumably similar device e.g. SD-card).

It has to have its own recycle bin, when you send a file to the recycle bin it is not really deleted, Windows just marks it as deleted in the Master File Table, it is still there on the hard drive, even when you permanently delete it, it is still there, Windows just deletes the entry from the MFT.

Since the external hard drive has its own MFT, then it needs its own Recycle bin also.