install.WIM vs install.ESD
Date Added: 6/17/2016

Windows Install ISOs come with either install.wim or install.esd.  They work mostly the same way.

WIM files are larger.
ESD files seem to have better compression (30% better) so they take up less space.

DISM RestoreHealth works with WIM files.
DISM RestoreHealth does NOT work with ESD files.

Based on rumors on the internet, ESD files are encrypted and WIM files are not.  If this is true, the ESD files sure are very easily decrypted.
You can easily convert to/from WIM and ESD with a simple DISM command.
Some older software supports WIM files but is not yet compatible with ESD files.

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