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SATA is Serial ATA. Its is faster, and worth implementing if your computer already has SATA controllers built into the mother board. SATA drives should not be significantly more expensive than an ATA 133 drive.
ATA 133 has a maximum burst speed of 133MBps, where as SATA can sustain 150MBps.
External drives are nice because they are portable. I have an external enclosure that fits a 2.5" hard drive(a laptop hard drive). This is nice because it does not require an external power source, it runs off the USB bus power supply.
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