Overland Storage Inc - Statement of Changes in Beneficial Ownership (4)

FORM 4 [ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES	OMB APPROVAL OMB Number: 3235-0287 Expires: January 31, 2008 Estimated average burden hours per response... 0.5
	Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940

1. Name and Address of Reporting Person * MCCLENDON SCOTT	2. Issuer Name and Ticker or Trading Symbol OVERLAND STORAGE INC [ OVRL ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __ X __ Director                      _____ 10% Owner _____ Officer (give title below)      _____ Other (specify below)
(Last)          (First)          (Middle) C/O OVERLAND STORAGE, INC., 4820 OVERLAND AVENUE	3. Date of Earliest Transaction (MM/DD/YYYY) 11/13/2007
(Street) SAN DIEGO, CA 92123 (City)        (State)        (Zip)	4. If Amendment, Date Original Filed (MM/DD/YYYY)	6. Individual or Joint/Group Filing (Check Applicable Line) _ X _ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security (Instr. 3)	2. Trans. Date	2A. Deemed Execution Date, if any	3. Trans. Code (Instr. 8)		4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price

Table II - Derivative Securities Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Trans. Date	3A. Deemed Execution Date, if any	4. Trans. Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	$1.77	11/13/2007		A		18000		(1)	11/13/2013	Common Stock	18000	$0	18000	D
Stock Option (right to buy)	$14.75	11/13/2007		D	V		11000	(2)	1/20/2013	Common Stock	11000	$0   (3)	0	D
Stock Option (right to buy)	$19.33	11/13/2007		D	V		18000	(2)	11/17/2013	Common Stock	18000	$0   (3)	0	D
Stock Option (right to buy)	$14.29	11/13/2007		D	V		18000	(2)	11/15/2014	Common Stock	18000	$0   (3)	0	D

Explanation of Responses:
( 1)	The option vests at the rate of 1,500 shares per month beginning one month following the grant date.
( 2)	The option is fully vested.
( 3)	The option was canceled by mutual agreement of the reporting person and the issuer, in accordance with the amendment and restatement of the issuer's 2003 Equity Incentive Plan as described in Proposal 2 to the issuer's proxy statement for 2007 Annual Meeting of Shareholders. The reporting person received no consideration for the cancellation.

Reporting Owners
Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
MCCLENDON SCOTT C/O OVERLAND STORAGE, INC. 4820 OVERLAND AVENUE SAN DIEGO, CA 92123	X

Signatures
Scott McClendon		11/14/2007
** Signature of Reporting Person		Date

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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