Unless you need the portability of an external USB HD, I would suggest replacing your internal with a larger one. For the same money, you can get a MUCH larger internal drive than you could with a USB drive.
As well, a USB hard drive will be very slow. The maximum theoretical speed of USB is 11Mb/s I believe. So that works out to 1.375 MB/s, which is quite nasty. Your internal hard drive can likely transfer data at approximately 10MB/s (just my best guess). And with USB, that is the MAXIMUM *theoretical* speed you can achieve.
BUT, if you want the portability, or you'll just be using that drive for storage and stuff, it should be fine. Storing files would be fine, but launching apps and working from the drive will be quite slow.
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