Ended up going with an internal drive, got a 1 TB Western Digital, installation went great and then my system gave long beeps and wouldn't boot, bad memory ftw. Turns out a stick of memory decided to retire while I was inside installating the HD, oh well, down to 3 GB of memory now.
Besides that, I was able to install Windows 7 64-bit Ultimate on my old HD (500GB) on it's own partition (50 GB) and just kept my music and such on the 1 TB drive. I am really impressed with Windows 7 atm, managed to install everything I had without any issues and my PC is running perfectly with it.
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