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Pationing an external hard drive

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I have a new SimpleTech 250 GB external drive. I want to partition it into two partitions, one for main HDD backup and the other for storage. I know to go into disk management and when I see the drive, I right click on it and it appears to be one partition. Do I delete this partition, then use disk management to create two partitions? Do I then have to reformat each partition or initialize them? I am reuuning Windows XP home.

I'd appreciate it if someone could walk me through a few steps here.
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If it has a partition, you would need to delete it (all data would be lost). It might be that there is no partition, so it is all free.

All you need to do is what you said. It should create the filesystem after you partition each one, it is part of the process. It does ask if you want to do it quick, which takes much less time.
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