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What is the recommended way to completely erase the Hard Disk and reinstall OSX, as the new OSX does not come on a CD, but an AppStore download I am a bit lost here.

Formatting is clear -- just run disk utility. But how do I then reinstall OSX?

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up vote 1 down vote accepted

Store your OSX installation on a USB drive. http://www.google.com/search?q=USB+drive+osx

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