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I'm trying to make a home server, and apparently, the type of server OS I'm wanting to run it on only work's with Ubuntu 12.04 LTS. I downloaded the .iso and I have my WD Pen Drive (500GB) plugged in, and when I try to create a startup disk, it won't let me create the disk. There's a screenshot below.

See how "Make a startup Disk" is gray?

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I found out that I had to erase and format the disk first, the issue has been solved

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