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Creating it with SD! or with DU is the same: we both use the same thing, and both have maximum sizes. If you want it encrypted, you'd need to create yourself, but you can still use the general steps provided.
Can't really help you with a stripped-down base system... that's why a basic install is helpful. Hard without the DVD, of course. I'd actually do it with a thumb drive if you have an Intel Mac.
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--Dave Nanian
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