I have a 1TB external drive and went through this with no hassles and kept all my recordings.
Unplug your external drive after the TiVo is powered down, so the TiVo does not notice the external drive being disconnected. After modding is done, yes just plug the external drive back into the TiVo before restarting the TiVo.
I also used the modding process as an opportunity to put in a new hard disk drive (to replace the 9 year old original internal drive).
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