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To exploit the full potential of a DDS-format drive, matching cartridges should be used: DDS-3 cartridges for DDS-3 drives, DDS-4 cartridges for DDS-4 drives, and DAT 72 cartridges for DAT 72 drives.
This will allow the drives to store the maximum amount of data on a tape. However, HP DDS drives are backward compatible. This means that, for example, a DAT 72 drive can read and write DDS-4 tapes. Note that it will use DDS-4 format, so the full advantage of DAT 72 will be lost. Drives are not forward compatible, so, for example, a DDS-4 drive cannot read or write a DAT 72 tape. It will simply eject it.
Also,
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If a DDS-2 or DDS-3 tape in a DDS-1 drive, it will be ejected immediately, and a DDS-2 drive will eject a DDS-3 tape.
In other words, no, you can not read a DDS-4 tape in a DDS-2 tape drive, it will be ejected.