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Yes I think keeping it unencrypted in this case may be the best option. The video card is supposed to be fully compatible, but in practice creates all sorts of difficulties. For example, I cannot run disk utility in recovery mode with this card installed and security updates often result in excruciating ordeals with a black screen that are only resolved by resetting the NVRAM.
I guess a SATA drive will always be faster than this external drive given the USB 2 connection, so probably better to do this without the external drive anyway.
BTW I followed your advice and bought an SSD drive for SD on the mini. I planned on enabling file vault and wondered if that will automatically carry over to the back-up drive or should I encrypt that in disk utility first?
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