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Maybe the external HD is the best option. I was previously thinking up building some setup that could store multiple HDs after I run out of space but in the end it is going to cost a lot more than just buying external HDs and it will also was electricity. External is also safer for your data. You can keep it in a fire/flood proof case.
Does your motherboard have an eSATA port? eSATA is a lot faster than USB 2.0.
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