I have always used the plugin USB and Firewire drives from Lacie and work great. These external drives are a little pricey, but work great. I decided to install some western digital hard drives for my scratch disks for Photoshop. If you want to make Photoshop run at it's optimum, it needs it's own hard drive! If your scratch disk is the same as your data disk or the same volume as your programs, photshop is not working as best as it can.
This process was really easy to do and the hardest part was figuring out how to get the drive in the slot. After a bit of looking, there was a button to press that allowed the drive bay to swing out and the install was easy from that point. I do think I want to install some round IDE cables in my system to make it easier to use as well as to hel out the cooling.
-mark