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for what it's worth...(knock on wood)
had success backing up to/booting from a WD Passport (III) Studio 320Gb unit purchased last month from Apple Store.
Using the Firewire cabling (not yet tried USB cable) i've seen no problems using this drive as both TimeMachine/SuperDuper volumes, partitioned GUID 100/220.
MacBook (late 2006) 2GHz/2G OSX10.5.6
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