Correct. The 2TB limit is a 32-bit addressing limitation which will apply to drives connected internally via ide/sata. External usb drives larger than 2tb will work with xp 32-bit.I think the SATA-USB conversion chipset on external HDDs does the disk geometry translation, so you could use a disk greater than 2TB on Win XP. Hope some of the experts here can confirm this, so that you dont have to be limited to 2TB on account of Win XP.