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SBS 2011 Compatible USB External Hard Drive for Backups

Hello,

I would like to purchase a new external USB hard drive specifically for our SBS 2011 WSB backups.  I have heard that certain externals are not compatible with Windows Server Backup jobs so I would like to make sure I get a compatible drive that is reliable.  Does anyone have any recommendations for this?  My backups with Exchange aren't extremely large, roughly around 250GB, but I would most likely want to shoot for something that can store a few at a time for redundancy, so around 1TB if possible.  

Any recommendations are appreciated.

Thank you
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Would you have any preference on whether it should be a portable or desktop external drive?  I'm fine with either if it proves reliable but not sure if there really are any huge disadvantages to the portables over self powered desktops.
Definitely go for a device which takes its power from the USB connection. Much more portable and easier to use. Reliability is the same either way.
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We use an external drive caddy like the Blackx or Nexstar and buy bare drives and have never had a problem.
Mike, this is exactly what I decided to do in the end.  Got Western Digital Black drives with a Vantec enclosure.  Very good way to go about it!