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I am encrypting a USB drive with TrueCrypt. It asks me if I am going to store files larger than 4gb:

TrueCrypt - Large Files

Does this make any difference (apart from being able to store files larger than 4gb on the volume)? Why is this option here?

I'm on Mac.

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This is for compatibility with the FAT32 file system which has a file size limitation of 2^32 - 1 bytes, which is equivalent to 4 GB - 1 byte. These options let TrueCrypt manage it's container accordingly.

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