Which RAID Configuration for my WD "My Book Mirror Edition"?

About to reformat my WD "My Book Mirror Edition" to use on my iMac.  I hope to also install on my iMac "Virtual Box", "VM Fusion", or "Parallels"  and then run a few windows products.  Which RAID  configuration should I choose in the WD "drive configurations" box?

If I were you I'd run any Virtual Machine directly on your iMac, not on a "WD My Book Mirror Edition", in particular not when connected through USB 2.0.
To store data, the WD is fine.
For the RAID options:
RAID 0 ("striping") : if you want something fast (insofar this is possible with a USB connection). Note that when one of your disks fails you can say goodbye to all your data.
RAID 1 ("mirroring"): more safe. If one disk fails, the data are recoverable as they are on the other disk as well.  Disadvantage is you get only half the storage capacity compared to RAID 0.
Oh. my personal recommendation: RAID 1 is not an alternative to making a backup. So whatever option you choose: if you store valuable data on the disk that are nowehere else: back them up!
On formats:
HFS+ : definitely recommended if you only use the RAID array on the Mac.
FAT 32: if you also use it on a Windows machine. Note that files cannot be larger than 4 GB in this case.
Hope this helps.
Eric

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