There have been unofficial reports, discussions, and concerns around advanced format hard drives and Windows Home Server, but now Microsoft has issued a KB article to address the issues in question. The advisory note KB2385637 discusses Advanced Format drives and their incompatibility with Windows Home Server v1.
Below is an excerpt from note KB2385637:
Below is the full article:
To improve the speed and storage efficiencies of hard disk drives, manufacturers are moving to a new technology known as “Advanced Format sector disk”. This technology requires the hard disk to be formatted and aligned in 4K sectors instead of the traditional 512 byte sectors that is currently used by most software. This article details the compatibility of these hard disk drives with Windows Home Server.
This article describes the two scenarios that can affect your installation of Windows Home Server. Some manufacturers provide alignment tools for their products; however these tools are not always compatible with the platform and technologies upon which Windows Home Server is built therefore we cannot provide support. You may consult hard disk manufacturers for their recommended solutions on adapting Advanced Format disks with various environments.