Comment 23 for bug 284085

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komputes (komputes) wrote : Re: Ubuntu Live USB creator creates persistent install that is limited in storage size

The 4GB limitation is a maximum file size limitation for FAT32. Supporting other types of filesystems (NTFS, ext3/ext4) is a subject which was discussed at UDS Maverick. After discussing this further with Evan Dandrea this feature will most likely land in 11.04.