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The scheme defines the overall organization of the drive, which can feel pretty obscure, because you rarely need to change it. You can select among GUID Partition Map, Master Boot Partition, and ...
Sometimes installing OS X may result in odd behavior if the partition scheme on the drive is not set up properly. If you are experiencing problems, a simple repartition during setup may be an easy ...
The drive you use must be formatted as a Mac OS Extended (Journaled) volume with a GUID Partition Table. To format the drive, go to Applications > Utilities and open Disk Utility.