We always suggest using a single large drive if possible. TiVo's are very tough on hard drives as they are reading and writing 24 hours a day even when just sitting in standby, so you will get a shorter life from a drive in a TiVo than you would in a PC. Also TiVo's are not very good at mapping around bad sectors on hard drives like PC's do, so bad sectors can kill a TiVo.
If you do decide to use 2 drives, once installed they are married and cannot be easily separated. So if one drive fails, you risk loosing everything on both drives. using 2 drives doubles the chance of having one drive fail.
For the same reason it is not suggested to install a new drive with an old drive, as the old drive is likely to fail sooner then the new drive would.
Unless you really hoard shows a single 500Gb drive should be plenty in an S1 TiVo.
8mb cache drives are fine, and provide a slight improvement in displaying the Now Playing screen over 2mb cache drives. There has not been any reports of improvements using 16mb over 8mb cache drives.
Check this WiKi entry for other information.
Peter.
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