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I've found the best deal is to buy an external enclosure and an OEM hard drive.
Using www.bensbargains.net you can usually find external enclosures for around $30 and then find a good rebate deal on a hard drive for about $0.50/GB.
All the drive enclosures are about the same, just make sure you have a supported interface (USB or Firewire) and that the enclosure you'll get can support the amount of storage on your new hard drive.
Usually when you buy a retail external hard drive from a name brand such as WD or Maxtor, you're going to be paying a jacked up rate.
One advice: when you get a HD, get one with 8MB buffer, it provides great performance advantage over 2MB versions when you are organizing within the USB HD, see test results here: http://www.nuassembly.com/USBHD/HardfactsUSB20.htm
on a related topic, are there any issues with putting cd/dvd+-rw's in enclosures? I'm thinking about this, and don't wanna waste $35-50. I need usb2 and fw, so it'll be fairly expensive but not as bad as another 811s. thanks.
Man I dislike external Hard Disk Drives!
Pluses to them.
Less stuff in your case!
Negitives on them.
More room takin up on your desk
slower than most internal HDDs(well)
blah blah blah