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Best to use a 2.5" external hard drive, a 500gb drive should be less than £50 and won't require an external power supply. Plug it in to the USB marked HDD as this one has a higher current.
Press the record button on the remote, and it will come up with a prompt to format drive. Do that, and away you go. You can record and pause live tv from the remote, you can do timed recording and series link from the guide mode. My TV can only watch the channel it records, but if you have a posh one with twin tuners you can watch one channel and record another.