Yes it does.
Because NTFS (WinXP) is a MUCH more stable file system then FAT32 (Win98) it doesn't automatically kick off after a "bad shutdown" like in Win98.
To run the error scanning:
Open up "My Computer"> Right click on the drive you want to check (usually C:)> Select Properties> Selet the Tools tab> It's the "Error Checking" option. I always do a full scan (put a check in both boxes)> When you click Start you will getting a popup saying it can only run when Windows first starts> Click yes> Reboot and the scan will start.
It's also a good idea to defrag the hard drive once in a while. It is also found in the same spot, right below the Error Checking button.
Personally I do a scan and defrag about once every 2 weeks or so. Just start it up and walk away because it can take awhile
Edit: Ooops, there was no reply when I first started typing this post