Windows Server Backup Destination Size Limitation

On a Windows Server 2012 R2 system, I want to have a USB disk attached locally for backups using the Windows Server Backup.
My understanding is that the disk will end up not having a drive letter and be somewhat hidden.
Is there a size limitation on the disk?  Any special considerations to prepare the disk?
I was thinking I'd seen an article that a Windows 7 machine was limited to a 2 TB USB disk for backup purposes.
I normally use Shadow Protect with a Synology NAS, other pointers in setting up the Windows Server Backup, disk selection and disk preparation would be helpful.
Ideally I would like a local 4TB USB Disk as my destination for backups.
Also if the same details would apply to a Windows Server 2008 R2 system would be helpful to know.
AnthonyMCSEAsked:
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rindiConnect With a Mentor Commented:
That limit is no longer an issue since windows 8/2012.
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Lee W, MVPConnect With a Mentor Technology and Business Process AdvisorCommented:
There ARE limitations (4K sector based disks) under Windows 7/2008R2.  As rindi stated, this is no longer an issue as of 2012/Windows 8.
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AnthonyMCSEAuthor Commented:
Thanks!  How would you prepare a 4GB USB Disk for use with Windows Server Backup on Windows 20112 R2?  Special format considerations?
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David Johnson, CD, MVPConnect With a Mentor OwnerCommented:
make it a gpt initialized disk. MBR has a limit of 2TB
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AnthonyMCSEAuthor Commented:
I'm reading that as part of the backup setup process the disk is automatically formatted by Windows Backup.  Is that correct and if so will it automatically initialize it as GPT?
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AnthonyMCSEAuthor Commented:
I realize that my questions are a bit broad and can start another question if that is needed.
Would anyone care to recommend a 4TB external drive that would be good for DR backups?
I'm looking at the WD 4TB Blue My Passport Ultra Portable External Hard Drive - USB 3.0 - WDBBKD0040BBL-NESN on New Egg.  It says it has encryption, which sounds good for the USB drive taken offsite, but would the password get in the way if I'm doing a full Disaster Recovery Restore?  Not sure if the Restore process would give me the opportunity to enter the password.
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Gerald ConnollyCommented:
New subject please post new question!
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David Johnson, CD, MVPConnect With a Mentor OwnerCommented:
That is a problem getting a chance to enter the unlock password
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