Recently I saw tat 10% of each drive is reserved as maximum for recycle bin.I have a 160 gb hard disk with quite big partitions...so I am worried if all those gbs of space are just 'reserved'.
Is the space allocated permanently or just used when needed?
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You can change this setting. If you want to reduce(or make zero) the amount of disk space for a particular drive or all of drive you can do that by right clicking recycle bin and clicking properties.