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Does Microsoft Backup have file size limits?

I'm trying to back up my C-drive (21 GB used of 74 GB) to an external D-drive with 74 GB (4 GB used) prior to upgrading from Windows 98 to XP. I keep getting messages that files have exceeded size for backup. Is there a size limit?
The problem you're running into is not so much a file size limitation with the Microsoft Backup utility, but rather the FAT 32 file system used by Windows 98. The backup utility attempts to create a file that exceeds the 4 GB maximum file size imposed by the FAT 32 file system (see Microsoft site for details). You are probably better off using a utility such as xcopy to copy files instead of creating a large backup file. Alternatively, a third-party backup utility might be more suitable depending on your needs.

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