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Backup to USB HD

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My backup plan currently backs up to a USB hard drive. Basically, it's an internal laptop hard-drive connected to the PC via a Vantec adapter.

I noticed an option called "Place Acronis True Image 2016 (64bit) on media". Will that work if the drive is formated as NTFS? I did see the note about flash drives needing to be FAT16 or FAT32, but wasn't sure if that note applies to a standard HDD.

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No it won't work because Windows cannot boot through a USB disk (it can on a USB flash drive). You could put the disk directly in the machine and boot that way.

I have the option in the BIOS to boot from the USB disk. I was hoping the Acronis option would copy the appropriate files to the disk to make it bootable.

If the BIOS and Windows allow to boot from that disk, you can still use a third party tool like YUMI to make it bootable and put the ISO of Acronis on it to boot into.