Seems like a case of over-optimism.  :-)
LTO4 physical capacity is a maximum of 800 GB.  You may not get that or much 
more depending upon data compressibility, physical file sizes, and tape block 
sizes.  You could reduce your Estimated Capacity value if the 1.0 T results in 
annoying reporting.
The mailing list archives hold past discussions on many topics, where 
http://adsm.org/forum/showthread.php?16498-ESTIMATED-CAPACITY-OF-LTO4-s is like 
this one.

   Richard Sims

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