HP Pavilion complains about Bitlocker saying TPM is not found. Is there a setting that I need to enable in the motherboard or is there an update for it?

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It's possible to encrypt your OS drive with BitLocker, but if your system does not have a built-in TPM, the only other options are to use a BitLocker Recovery Password (a 48-digit number you type at every boot) or a BitLocker Recovery Key (a 256-bit stored on a USB disk that must be inserted at every boot).

By default, group policy requires a TPM on the system for BitLocker to be enabled on the OS drive, which is why you're seeing this error. To change this policy:

  1. In start menu, type gpedit.msc and hit Enter.
  2. Go to Local Computer Policy > Computer Configuration > Administrative Templates > Windows Components > BitLocker Drive Encryption > Operating Systems > Require additional authentication at startup.
  3. In the radio buttons at the top, select "Enabled."
  4. Check the box marked "Allow BitLocker without a compatible TPM."
  5. Hit "OK."

From there, you should be able to enable BitLocker on your OS drive as normal. You may need to logoff/logon for the policy change to take effect.

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Yeah Thanks, I noticed this later on, however USB usage is makes it really risky. But still I guess taking 3 backups of the USB stick this is doable :) – Dr. Evil May 30 '11 at 5:45
Also, however unlikely, your system may support TPM but it is switched off in the BIOS. You should check there first so that you don't have to use a USB drive to unlock to access your system. – SgtOJ Sep 9 '11 at 23:15
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