I don't know if LMCE can use an NTFS drive, but I'm guessing that as long as the OS can handle the file system (and I believe that 0710 can, even in read/write mode) then it shouldn't make any difference. The pnp is triggered off the fact that it is a new USB device arriving, and it should determine the file system type on its own and mount it like any other.
LMCE 0710 should be able to use the NTFS disc, until then 0704 can read from NTFS, but not write to it, therefore you can not use the external disk with a 0704 install